Very interesting read! When I first saw the headline I had doubts about how consumers would trust the mechanics, but the guarantee and convenience seem to offset concerns around trust. As they expand even more, it will be interesting to see how traditional brick and mortar repair shops respond and if pricing and flexibility at traditional shops begins to move in a competitive response.
Great read, Cameron! As I was reading, I had similar concerns to Andrew – I wonder what their retention rate actually is and how they can improve if people have a “I’ve done it once” attitude. Perhaps the physical location or new obstacles can help bring in participants who want a new challenge. Also, I had never thought about how much media/free advertising they get through social media. Great point in the importance to their business model – I wonder how they will continue to leverage the free advertising vs. other media outlets and what the appropriate balance is to continue to grow as the market becomes more saturated.
I look forward to tracking how this progresses in the future. It will be interesting to see how many businesses begin to accept Venmo and how fast that number will grow. I also wonder how consumer behaviors will change as currently consumers can opt to use a credit card at businesses and typically receive rewards of some kind (cash back, points, etc.). Will Venmo’s value proposition and ease of operational use for those who link directly to a bank account offset the incentives of other payment methods? Or is there a limit to the volume/types of payments made over Venmo? (i.e. those typically made with cash to begin with or within a certain dollar threshold)