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Gaurav's avatar

This smells like a shareholder funded low margin business. Currently platforms are doing uneconomic business to acquire customers but when they will try to make this business economic the customers will be unhappy as they are used to getting good deals using this platform. So real test is how many will stick around once the lucrative discounts and offers are not there any more......or will they switch to alternatives.

I remember in Asia Uber was aggressively competing and their rides were super cheap......eventually they folded the business and sold it off because there is so much money investors are willing to lose.

So shareholder funded charity is not a viable business model.....better invest when you know who the survivor is in this crazy battle for market share instead of profitability.

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Dan Flatt's avatar

I found this article very insightful after hearing your analysis of CGB on the Tech Buzz China podcast. My start-up Naborino is adapting the CGB model for North America. We're always interested in English-language analysis of China's CGB market if you have any recommendations.

(Other than your newsletter of course!)

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