Once-Flush Startups Struggle to Stay Alive as Investors Get Pickier

Re:Once-Flush Startups Struggle to Stay Alive as Investors G... by danderino on Sunday April 23, 2017 @02:55PM (#14179743)

"Beepi guaranteed sellers a price, and if it couldn’t find a buyer in 30 days, it purchased the car. Beepi marked up the price and pocketed the difference. "

Wait, am I understanding this correctly?

They guaranteed high prices which they were not able to find buyers for, and as a result bought the cars at those high prices?

And they immediately offered this service to all users? That seems idiotic for a startup. I would have just tried to make money off charging a small transaction fee while working to see if the business model they were aiming for had any viability.

[ Parent | on HN ]

Re:Once-Flush Startups Struggle to Stay Alive as Investors G... by coredog64 on Sunday April 23, 2017 @04:33PM (#14180312)

What is the business model for what you are proposing? Car sales on consignment? That might work for a small number of well off consumers, but most people don't own their cars outright. As such, they are unable or unwilling to continue to make payments on a car they can't use.

TBH, it sounds very much like what open door does with housing.

[ Parent | on HN ]

Re:Once-Flush Startups Struggle to Stay Alive as Investors G... by toomuchtodo on Sunday April 23, 2017 @06:52PM (#14180882)

Carmax does it with millions of cars per year. It's not magic. If you're a market maker, you need volume, capital, and intelligent valuations and pricing of your goods.

[ Parent | on HN ]