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Yes, this is the inherent issue at play nowadays. Investors are throwing silly money at startups in an attempt at global domination. What then happens is that the start-ups rely on pricing at a loss to get the majority market share and absorbing the loss through their silly money funding. End result is that simple business models end up getting destroyed because the customers are now sensitive to any price hikes above the loss making prices. The funded company now has to pursue a mish mash of money making strategies to try and break even. It remains to be seen whether this strategy will work long term.


Uber is 9 years old, "remains to be soon" makes you wonder how long it takes for investors pumping money into hypothetical winner-take-all markets to get tired and leave.


Perhaps sunken cost fallacy affects even the most brilliant investors.




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