4 ms·

I can't believe it takes b-school professors to figure out that people financing their DoorDash might not be the best people to lend money to.

by spaceman_2020 1y ago

rchaud 1y ago
This is the primary positioning tactic used across the startup industry . Uber isn't a taxi app, it's actually the "future front end for millions to access autonomous transport". Doordash isn't a delivery app, it's an "on-demand logistics" platform. Similarly, Klarna isn't a shady payday loan company, it's an "AI-first consumer finance play".
- Avicebron 1y ago
  > "AI-first consumer finance play" In a more civilized time, saying this was your plan would get you chucked feet-first into a wood chipper.
  - runlaszlorun 1y ago
    oh I think we're heading back that way slowly...
  - dcsan 1y ago
    The addition of "feet first" made this much more evocative!
- spaceman_2020 1y ago
  Heard a new term yesterday: “private credit”. Lenders that give unsecured loans to businesses at high interest rates We just used to call them loan sharks
dagw 1y ago
Not that I necessarily disagree with your overall take, but can someone explain how 'financing' your DoorDash order with a credit card is perfectly OK, but financing with Klarna is somehow dubious and shady. Surely the problem is buying stuff you cannot afford, not how you choose to buy it.
- twosdai 1y ago
  This is a great comment and comparison. I think there is a feeling that klarna, and other bnpl companies just lend without checking or caring of consumer credit, or buying power. I've never used them before, so I don't know if this is a case. With credit cards there is the "appearance" of them checking credit scores, ability to pay , etc.. before giving a credit card. I say appearance, because as we all know cc companies will just lend cards to anyone, and then charge huge interest rates. Ultimately it's another form of credit, and it's a minor change on the current system. But since it's finance and lending, it's a step to make lending easier.
  - IlPeach 1y ago
    Lending and banking in general is a highly regulated market so they do have to underwrite and do anything in their power to avoid lending money or start contractual obligations with people that are bad creditors. Source: worked for them for 2 years.

I can't believe it takes b-school professors to figure out that people financing their DoorDash might not be the best people to lend money to.

rchaud 1y ago

This is the primary positioning tactic used across the startup industry . Uber isn't a taxi app, it's actually the "future front end for millions to access autonomous transport". Doordash isn't a delivery app, it's an "on-demand logistics" platform. Similarly, Klarna isn't a shady payday loan company, it's an "AI-first consumer finance play".

Avicebron 1y ago
> "AI-first consumer finance play" In a more civilized time, saying this was your plan would get you chucked feet-first into a wood chipper.
- runlaszlorun 1y ago
  oh I think we're heading back that way slowly...
- dcsan 1y ago
  The addition of "feet first" made this much more evocative!
spaceman_2020 1y ago
Heard a new term yesterday: “private credit”. Lenders that give unsecured loans to businesses at high interest rates We just used to call them loan sharks

dagw 1y ago

Not that I necessarily disagree with your overall take, but can someone explain how 'financing' your DoorDash order with a credit card is perfectly OK, but financing with Klarna is somehow dubious and shady. Surely the problem is buying stuff you cannot afford, not how you choose to buy it.

twosdai 1y ago
This is a great comment and comparison. I think there is a feeling that klarna, and other bnpl companies just lend without checking or caring of consumer credit, or buying power. I've never used them before, so I don't know if this is a case. With credit cards there is the "appearance" of them checking credit scores, ability to pay , etc.. before giving a credit card. I say appearance, because as we all know cc companies will just lend cards to anyone, and then charge huge interest rates. Ultimately it's another form of credit, and it's a minor change on the current system. But since it's finance and lending, it's a step to make lending easier.
- IlPeach 1y ago
  Lending and banking in general is a highly regulated market so they do have to underwrite and do anything in their power to avoid lending money or start contractual obligations with people that are bad creditors. Source: worked for them for 2 years.