| Comment | So a part of these platform models is this notion of ever increasing externalities.. I.e. more buyers equals more sellers and more sellers equals more buyers.
It’s financially beneficial to them to be in it, but it’s nowhere near as profitable as what it would be to have that scale outside it. You are right, it’s still profitable but the margin for each transaction is so severely eroded, things like good customer service go out the window. The sad part is, if you’re a small food/fast food business and you’re not on the apps, you’re probably fucked. |
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