In the past week, we saw two start-ups close their doors (Zirtual and Zen99) and when you throw in Homejoy, some might call that an alarming trend. I think companies in this space have been given a lot of slack by investors who are overlooking traditional metrics in search of that next Uber.
If more go down, it could be a wake-up call to investors that maybe they shouldn’t be quite so cavalier with their money. Uber is obviously a unique case and even they’re having trouble with profitability, despite having very little in the way of capital expenses and employee costs (typically two of the biggest costs of any start-up).
Today, RSG contributor, John Ince, takes a look at Uber’s secret weapon, dives deeper into the Zirtual meltdown and touches on tipping in Uber cars. We’d love to hear what you have to say about the week’s top stories so please leave a comment below.
Btw, last week I went on NPR to talk about the Uber lawsuit and you can find the live segment here. David Plouffe got a little bit more air time than I did but still a good experience 🙂