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https://en.wikipedia.org/wiki/Loss_leader https://en.wikipedia.org/wiki/Loss_leader They use their revenues and funding to subsidize lower prices in key cities
by onewaystreet 11y ago
https://en.wikipedia.org/wiki/Loss_leader https://en.wikipedia.org/wiki/Loss_leader
They use their revenues and funding to subsidize lower prices in key cities than their competition can afford. They already do this in a few cities.
- danieltillett 11y agoSure, but their investors are going to want them to start extracting profits at some point in the future. You can’t run an business indefinitely selling below your costs. The question I have is how are they going to be able to start doing this without opening themselves up to competition?