Re:On-Demand Startups Are Hemorrhaging Tens of Billions a Year
by onlyrealcuzzo on Tuesday April 02, 2019 @05:07PM
(#19558589)
Most of the cost of the poke bowl is fixed, not marginal.
The full cost of the poke bowl is a function mostly of rent and wages (which are largely a function of interest rates and rents). If a recession hits, wages and rents will fall, and with them the cost of the poke bowl as well.
The marginal cost of poke bowl is like $3 of fish and $0.10 of rice and veggies.
It'll be a double whammy hit. As the unsustainable businesses collapse and prices rise back to reality, it'll cause an even larger drop in net sales due to consumer's reluctance to pay the full cost of their poke bowls. Combine that with a bunch of gig economy workers having their only income source dry up and you've got a financial mess at a large scale.