[lazide]

Alternatively, like Amazon did for many years, you can ‘reinvest your profits’ - aka subsidize shipping on behalf of investors.

VCs and many others did the same in Uber, UberEats, scooters, etc.

Then they stopped when the Fed started raising rates, as they expected (correctly) that expectations were changing and revenue now mattered more than expected future trajectory.

[hef19898]

Difference is, Amazon did so while remaining profotable and, more importantly, cash flow positive. Operation free cash flow, a detail Uber at al forgot when they tried toncopy the Amazon model.

[lazide]

Notably, I don’t think they forgot.

It was an attempt at market dumping using investor cash in order to capture the market.

And it kinda worked. Taxi companies took a serious hit.

Now we’re seeing more realistic market prices, and investors are getting hit hard. Because they didn’t succeed at getting the monopoly they wanted.

That’s the larger picture, IMO.