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by LrnByTeach 2999 days ago
CEO Gibbon talk sums it up. - prematurely scaled, charging deep discount price of $5 with the help of $65 Million VC money.

Looking back, Gibbon says that “the investment we took, everything we got, wasn’t warranted for where the business was at. And I think that really hurt us. The expectations were way too high. We had a lot of capital. We had to deploy it. And I don’t think we were ready to do that. We prematurely scaled.”
1 comments
rahimnathwani 2999 days ago
"charging deep discount price of $5 with the help of $65 Million VC money"

Your comment reminds me of the pizza company in the most recent episode of Silicon Valley.

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lkrubner 2999 days ago
Except Sliceline, in the HBO show, was inspired by real-life Slice, which makes a shocking amount of money.

https://play.google.com/store/apps/details?id=com.slicelife....

Slice is here in New York and I've been to their office and I know many of the programmers who work there, so I know they are surprisingly successful.

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TheCoelacanth 2997 days ago
It's a completely business model, though. Slice just provides online ordering for existing pizzerias. The marginal cost of each pizza sold is very low, so they don't have to make a lot off of each pizza to eventually be successful if they have high enough volume.

Sliceline was doing things with high operational costs like repackaging and delivering pizzas, so their marginal costs for each pizza were very high. That means they have to make a lot off of each individual pizza no matter how high their volume gets.

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smt88 2999 days ago
It's not any different from Uber, as well
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