• 0 Posts
  • 7 Comments
Joined 1 year ago
cake
Cake day: June 15th, 2023

help-circle




  • Leadership at these companies is personally compensated based on how quickly the company grows. They’re trying to maximize growth of the company by absorbing demand from the higher end, but in the process of doing so they end up pricing out the low end of the market, leaving low end consumers under served. They’re growing, they’re leadership is getting compensated better than ever, but now it’s difficult to find affordable places to eat out.

    Theoretically what is supposed to happen in such a situation is new companies come in to take advantage of the gap left, but that’s not really happening because investment is all being focused on higher return opportunities. The low end stuff is still profitable and has potential for growth, but it’s not profitable/growing enough to attract investment over stuff that is perceived to be growing more aggressively.



  • So, they’re really easy to work with and relatively affordable, so great for prototyping, and acceptable for production if a company wants to get stuff out the door without getting a proper custom built solution that would be better in the long run.

    When spin (electric scooter app rental company) pulled out of Seattle, they didn’t pick up a lot of the scooters there. People started pulling them apart when it was deemed they were legally abandoned, and it turned out they were all running on raspberry pi’s as their brains.

    Ultimately it’s save money on the development side since it allows companies to use less experienced or specialized employees. It’s obviously expensive in the long term since a custom built system that only does what you need it to would cost less