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This was certainly true for us at Livingsocial and, to an extent, it was true for Groupon as well. The cash burn sucks, but you have to love the unit-level eco
by jseip 12y ago
This was certainly true for us at Livingsocial and, to an extent, it was true for Groupon as well.
The cash burn sucks, but you have to love the unit-level economics that this model provides. Want to turn on new revenue? - just open up another city!
- anon808 12y agoyes, but how do you turn on the new profit?
- brianbreslin 12y agoin many cases thats not a short term concern. They see it as "let me spend $1M to buy $1M in revenue." Thinking is they can buy revenue, and then downline achieve efficiencies of scale to earn profits.