Do food delivery companies that spend this much on customer acquisition have issues around product/market fit? Or are they trying to acquire scale economies and benefit from a positive feedback loop?
Subsidized goods or services aren't COGS, but instead are in-kind CAC.
Subsidized goods or services aren't COGS, but instead are in-kind CAC.
https://twitter.com/jasonzweigwsj/status/1487941520456134656
Andy Rachleff: “You know you have product/market fit if your product grows exponentially with no marketing. That is only possible if you have huge word of mouth. Word of mouth is only possible if you have delighted your customer.”
Until a delivery business establishes superior liquidity, it is vulnerable. Part of liquidity is more delivery people available which is a function of more transaction volume. Density of transactions can generate positive feedback. You're at the mercy of your stupidest competitor 
What does game theory predict re outcomes?
"Everyone has to play the game on the field. You could sit around and say, ‘We’re going to get to profitability" but You might as well lock the door. So you’re forced into a game of capital warfare." Bill Gurley 25iq.com/2016/10/14/a-h…
"Everyone has to play the game on the field. You could sit around and say, ‘We’re going to get to profitability" but You might as well lock the door. So you’re forced into a game of capital warfare." Bill Gurley 25iq.com/2016/10/14/a-h…
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