The only portion any of those companies fit is that they're capital intensive, which is surely true of any large web-based company. Can you explain how you think all of them DO fit that profile?
> It’s capital intensive, doesn’t easily scale without linear costs, is basically a commodity, seemingly has negative cashflow forever, and customers aren’t willing to pay what it actually costs. It’s basically the worst tech business model and yet somehow VCs caught a spell and threw every available penny into the fire.
We already agree on the first two. So the following remains:
"commodity, and customers aren’t willing to pay what it actually costs"
To that I say:
- AWS, Uber are all commodity
- Most customers of AWS, Uber aren’t willing to pay what AWS, Uber charges them
Disagreements?
HOW are AWS and Uber commodity? What commodity are they?
In what possible way could customers not be willing to pay what they're charged? Both companies saw billions in profits last year – is that paid unwillingly? Are they extorting their customers? If they're both commodities why wouldn't the customers just purchase from a different provider?