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How much are you paying though? The service is undoubtably being heavily subsidized by VC money. This is the classic silicon valley model, a model I love, but
by birken 11y ago
How much are you paying though? The service is undoubtably being heavily subsidized by VC money. This is the classic silicon valley model, a model I love, but there has to be a light at the end of the tunnel.
As noted in the OP, this also reminds me a lot of Exec, and Exec didn't work. In the post-mortem, JK makes a very interesting point:
> if a job request came in and there were no Execs available to run them ... we sent someone from the office to run the jobs ourselves. Unfortunately, this gave us a false sense that the quality of service for our customers was better than it was, as the average competence of our employees was higher than our average recruitable errand runners. [1]
This is a critical problem that any service business like Magic will run into. Training and quality becomes much harder at scale, and the more you have to pay for "Magicians", the more you have to charge. And if it costs too much money, it isn't "Magical" anymore. Yes, they have advantages over Exec because they can arbitrage less expensive labor overseas, but quality at an efficient price is still going to be a huge issue.
1: http://justinkan.com/exec-errands-post-mortem http://justinkan.com/exec-errands-post-mortem
- gkoberger 11y agoEverything on my list was either free, or would have cost me significantly more than the markup to Uber there and back (and that's not even including the cost of my time).
- baudehlo 11y agoGiven the question is here on HN, I think the question is more oriented towards: can this business survive? If you didn't pay anything for these requests, I don't see how it can.