In this week's Money Talks segment, Pete Townsend and Eoin Fitzgerald dig into a slice of "Pizza Arbitrage" from the Margins blog by Ranjan Roy and Can Duruk on the Doordash, Uber and Grubhub strategies of growth at all costs, and delve into the importance of recharging yourself, work-life and pandemic-driven cultural changes and the staying power of massive retail brands.
This episode is kindly sponsored by Ireland’s fintech and financial services recruitment specialists, Top Tier Recruitment. If you would like an intro to the team at Top Tier Recruitment, please click here.
In this episode, Eoin and Pete dig into pieces of content from this week that are relevant to the cosmic cloud of startups, tech, venture deals and enterprise in which they live. The stories covered in this week's episode include:
- Pete on the growth-at-all-costs model: “I don’t think profit is the goal. I think an exit is the goal, for both the founders and the VC funds backing them. The metrics on an exit are multiples of revenue rather than profit when it comes to companies like these. The whole idea is to create these revenue-driven business, profits be damned, find someone to acquire it, cull a bunch of cost out of that business and the acquiring company keeps the revenue.”
- Eoin on the growth-at-all-costs model: "It’s all well and good owning the market, but is it sustainable? I guess it is if you still have Softbank or whomever pumping money into you.”
- Eoin on the cross-sell: "These companies are asking ‘how do we get more users onto our platform or our wider ecosystem in whatever way, because then we can sell them multiple different types of products.'”
- Pete on Facebook Shops: "If you have a media channel where your business may already have a presence, versus going for something like Shopify that lets you create an online shop separately, well if you have a bunch of users and customers that are already going to your Facebook page, well hell, just sell to them there."
- Pete (channeling Arianna Huffington) on recharging: "How can you be your most creative, empathetic and charismatic self when you’re leading through a crisis if you did not sleep the night before."
- Eoin on working from home: "People want to go to work for Facebook and Google because of the in-house culture and perks as well as the pay, so if you don't have those things, is it as attractive for me to work for Facebook from my house in Naas?”
Also, see below for Pete's and Eoin's latest reads referenced on the show:
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