[kitcar]

One thing to note about a lot of "infrastructure" businesses is it can make business sense for them to offer deep discounts to large customers to cover their overhead - they then make their profit by selling whatever excess capacity is left over to smaller customers.

I.e. imagine you want to setup a new courier business. You convince Amazon to move all their shipping to your new courier company, by giving them a price which is almost unprofitable for you. You then make your profit on the excess capacity you have, by selling it to individuals who need shipping at more profitable prices.

[epa]

Although, scary business model if you lose that customer

[hvidgaard]

The trick is to have enough of those customers, so one leaving doesn't leave you bleeding.

[kitcar]

True. Get them to be an investor in your firm, and that risk is reduced.