Just because VCs didn't want to miss the valuation gravy train they blindly followed metrics which would be rubbish to someone with common sense let alone an Ivy League management degree.
Question for you: What would have happened if Uber and Lift charged two separate transactions for every ride. One charge for their take rate and a second charge also on the rider's credit card going directly to the driver? Doing so would have prevented them from being sued for using independent contractors for the drivers. But if would have also dramatically lowered their "Revenue" causing the investors (VC & public) to think of them as a much smaller company.
excellent take
Fast.co and Bolt are fantastic case studies on this.
excellent examples
Excellent piece 👏
Thank you my man
its kind of wild to me that no where in this entire article did the author bother to mention what GMV stands for.
Just because VCs didn't want to miss the valuation gravy train they blindly followed metrics which would be rubbish to someone with common sense let alone an Ivy League management degree.
Question for you: What would have happened if Uber and Lift charged two separate transactions for every ride. One charge for their take rate and a second charge also on the rider's credit card going directly to the driver? Doing so would have prevented them from being sued for using independent contractors for the drivers. But if would have also dramatically lowered their "Revenue" causing the investors (VC & public) to think of them as a much smaller company.