Very interesting business model shift.
I wonder how Zillow and Opendoor manage the risk of programs such as this. Homes are very expensive assets to have on their balance sheets, especially if completely unhedged. I wonder to what extent they engage in financial operations to mitigate their exposure, and how much this impacts their eventual profitability.
Hi Hanif – great blog post.
I wonder what the main reasons are that caused Instagram stories to be so much more successful than snapchat. A few things come to mind:
– Integration with other features (such as instagram itself) makes it easier to use the stories feature
– Better user interface and experience (especially after Snap’s redesign)
– Lower customer acquisition cost (due to FB)
What do you think?
Great article and topic.
I have been interested to see that in recent months some hotels / smaller B&Bs have been using Airbnb as a viable alternative booking channel to traditional OTAs. On a recent trip to Napa, I noticed full-service hotels being offered side-by-side with private homes.
This makes sense to me; Airbnb’s fees are usually ~20%, below the ~30% charged by many OTAs. I hope to see this continue in the future. I find that comparing Airbnb options to hotel options is usually the decision that I, as the consumer, am attempting to make.
I, for one, would welcome the introduction of a data-driven dark kitchen. I would be very intrigued by the flavors it could come up with, and agree that delivery platforms are well equipped to introduce this innovation.
I do wonder why platforms such as uberEATS do not play a more active role in helping restaurants shape their menus. My hypothesis is that (i) restaurants don’t trust UberEATS as a valid data source for culinary decisions, (ii) uberEATS hasn’t yet invested in this area, given their massive growth, or (iii) restaurants are resistant to change, prioritizing the in-house experience over the takeout experience.
I find Steam’s distribution system fascinating. As other commenters have mentioned, it is very impressive to have built such a profitable digital distribution system without the natural advantages from related search/OS/web businesses (as Google, Apple, and Facebook have done). The costs to multi-homing are very low.
However, this makes me question whether Steam plays a vital role in the market. I wonder if the company has to do lots of engineering to ensure games run smoothly on many different types of computers. I don’t have a concrete understanding of how big a task this is – but could account for the firm’s ongoing success.
Twitch is definitely a possible competitor to traditional media services. However, I wonder to what extent they are substitutes or complements. Personally, I do not see scripted TV and Twitch streaming as providing nearly the same experience or filling the same need for users. Is it possible that Twitch and TV / online video are totally separate markets?