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by pembrook
2238 days ago
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In reality, there is no choice between: A) Silicon Valley-style hyper growth or B) Slow and steady growth Choice B is not actually an option if you want to change human behavior and actually benefit from economies of scale. This is because of the nature of competition and the power of habit. If it takes you 20 years to go national, then competitors will have cemented themselves in each region you try to operate. And because humans are creatures of habit, it will be ridiculously expensive to get them to change their behavior even if you offer a comparatively better service. |
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But there's little or no economies of scale in the delivery business. A citywide delivery service would be equally efficient whether operated by a local company or a multinational. The local company may even have an advantage in terms of knowing their customers better. The only economy of scale I see is access to cheap VC capital.