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>They're more expensive than that, but subsidised by VC capital They're being subsidized? How do you explain their fat margins, $15.4B of profits on $54.0 of r
by gruez 2mo ago
>They're more expensive than that, but subsidised by VC capital
They're being subsidized? How do you explain their fat margins, $15.4B of profits on $54.0 of revenue? https://en.wikipedia.org/wiki/Pinduoduo https://en.wikipedia.org/wiki/Pinduoduo
Maybe there's some loss leader going on, but comparing it to "VC capital" (venture capital... capital?) doesn't make much sense, any more than calling costco's rotisserie chicken and hotdogs "subsidised by VC capital" doesn't make much sense.
- stickfigure 2mo agoYeah, parent's comment doesn't make any sense. Temu is a marketplace, they aren't manufacturing these products. I doubt Blackrock is investing in random bottom-tier manufacturers in Yongkang.
- veeti 2mo agoTemu was hardly the first online store for cheap Chinese goods of varying or dubious quality either. Does anyone remember DealExtreme.com? They were around before Aliexpress.
- mvcosta91 2mo agoIt was circa 2012, and a coworker bought a drone but received an Invisible Bra instead. The unboxing guaranteed the loudest laugh we ever had.
- officeplant 2mo agoI miss buying random crap on deal extreme and finding a box at my door 3 months later I forget I ordered.