… Read more
The problem with ride-sharing is simple; Lyft and Uber are losing a lot of money.
They are doing so to increase market share: To drive taxis out of business.That they are losing money, and the fact that they are highly valued means that they, and all their investors, expect that they will eventually stop losing money and start making it hand over fist.
Last week I posted about Zillow adding a money losing new business where the margins are so thin it’s unlikely they will ever make money… yet their shares went up
They were obviously displaying that much revered strategy of Mark Zukerberg “move fast and break stuff” … in Zillow’s case the stuff may be the bank accounts of their investors but hey, “a fool and his money are soon parted” which sounds like a great investment thesis
Moving on from this is a great article here
It shows four industries broken by tech where the results are much worse than they were pre “innovation”.… Read more
I thought I was a businessman… I now realise I’m still a kindergartener compared to some US “businessmen”
Zillow- IPO in 2011 – added $128M to revenues and shares rocketed 19% on “better than expected” revenues. WOW
Is this a case study that I could teach at SMU?
Let’s take a look behind the headlines
It’s revenue rocketed because they are in a new business… house flipping
So let’s see how Zillow’s new thingy did in the quarter ended March 31:
* Sold 414 homes.… Read more
I’m delighting in thinking about the background as to how intelligent people make stupid mistakes.
Yes, I have another course to develop content for… this time strategic thinking and in particular UN-strategic thinking of Brexit, of Nokia and of Boeing 737Max amongst others. All were avoidable disasters that weren’t avoided: why?
In reviewing the most spectacular failures three key factors result in the kind of expensive, embarrassing, late-stage collapse that is the hallmark of a these cases.… Read more
When we are thinking creatively sometimes we struggle to identify which “great” ideas to progress.
Here is a simple prioritization matrix to assist.
When people want to develop new ideas, they most often think out of the box in the brainstorming or divergent phase. However, when it comes to convergence, people often end up picking ideas that are most familiar to them.… Read more