Delivery apps, gig economy companies crushed by tech stock crash, recession fears

Entertain a thought experiment: In this day and age, how would you build the world's biggest lemonade-stand business?

The business of lemonade should be simple: You need the raw goods and a sales platform . Using this model, you might eke out $0.10 in profit for each $1 cup sold — not bad, but hardly a high-growth, paradigm-shifting business. Suppose you become more ambitious. You sprinkle some caffeine into your concoction, tout the health benefits of vitamin C, and bill your beverage as the"future of hydration." You create a mobile app to place orders, contract with drivers to deliver the lemonade, and spend a truckload on marketing. All of this is expensive, so it now costs you $1.75 to sell a $1 cup. Despite these losses, your customer base grows explosively.

— Uber, Lyft, DoorDash, Instacart, and the like — have gone through these gymnastics at tremendous scale, building massive operations on the back of money-losing ideas. At their most basic these companies, from taxi-cabs to food delivery, are comparable to my proverbial lemonade stand: a simple business that allows its operators to eke out a profit.

Ireland Ireland Latest News, Ireland Ireland Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Snap’s warning of a weaker outlook sends ripples through tech stocksSnap stock tumbles 30% after warning about deteriorating economy, sending other tech stocks falling. Is Snap the canary in the coal mine?
Source: MarketWatch - 🏆 3. / 97 Read more »

5 Things to Know Before the Stock Market Opens WednesdayU.S. stock futures fell Wednesday after the Nasdaq sank as Snap’s plunge dragged tech stocks lower. LOL.
Source: nbcchicago - 🏆 545. / 51 Read more »

Strategists pick their top stocks to beat rising prices and slowing growth — including some they say are 'extremely cheap'CNBC Pro identifies strategists' top stocks as the global economy battles rising inflation and slowing growth.
Source: CNBC - 🏆 12. / 72 Read more »

Today’s biggest stock market losers aren’t limited to technology, as economic fears mountSnap’s warning about a rapidly sliding economy sent shock waves through the stock market. All these are fake pullback...Opportunity to buy. Earning still positive regardless the noise. Social media will always exist. Buy the fake pullback
Source: MarketWatch - 🏆 3. / 97 Read more »

Bear market raises recession fearsConcerns about a recession are on the rise as the stock market tumbles into some hairy territory.
Source: dcexaminer - 🏆 6. / 94 Read more »