Re:WeWork lays off 2,400 employees
by eternalny1 on Thursday November 21, 2019 @10:16PM
(#21602129)
> The cost of that $7 are the billions they lose every quarter. It's not sustainable.
They will raise prices eventually, they are in the "get a lot of regular users" phase still, growing that until they are ubiquitous.
Yes, they may face monopoly concerns then, but that is down the road.
What they will not face is competition from the $30 taxi companies, because unlike the taxi company they do not own any cars and the resultant costs of that.
I believe the plan is to increase prices.
Cheap rides are to gain marketshare and customer acquisition. Not saying the strategy will be fruitful but it is a strategy.
The cost of that $7 are the billions they lose every quarter. It's not sustainable. They're a public company now, so to come up with fresh cash, they have to issue bonds and pay interest on them. How will they repay it when they aren't generating fresh cash through profits? They can't rely on VCs opening their wallets whenever they needed money.