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If that's true, then they will find out why it's a losing strategy when they run out of money, and their VCs will hopefully learn not to fund companies whose bu
by beat 13y ago
If that's true, then they will find out why it's a losing strategy when they run out of money, and their VCs will hopefully learn not to fund companies whose business model starts with loss-leading commodities against established market giants.
But I find it hard to believe VCs are that stupid.
- ForHackernews 13y agoBut I find it hard to believe VCs are that stupid. I don't.
- beat 13y agoWell, yeah. But snark aside, I did a little research on the startup shamed in the article, and their business model actually looks viable to me. They have a couple of serious efficiency advantages over the existing models (no restaurant + limited menu + software managed delivery). I don't think an $8 delivered meal is out of the realm of possibility with their model.