This is for stock sales which they did not restrict. Robinhood stopped the purchase of stock which does not require a collateral because the money is coming directly from the users cash balance. Don’t believe whatever they say, RH action was specifically to stop the short squeeze.
If the pandemic continues for another 9 months probably if not things are going to get worse, because people are going to go out a lot more when the pandemic is over and order delivery’s much less.
This is a regulatory response to Silicon Valley’s implementation
of predatory pricing.
Let me explain:
Predatory pricing is defined as “the pricing of goods or services at such a low level that other suppliers cannot compete and are forced to leave the market.”
For silicon valley startups like Doordash and Grubhub this is accomplished by acquiring customers at a significant loss in ways that may often seem idiotic.
The End game is to be the dominant food ordering platform in any given town where you get to dictate rates like 25%.
Since predatory pricing is illegal, this response is justified. However, it would be better if regulators enforce predatory pricing rules to begin with, which they rarely ever do.
Yes, and the author is misinformed to think that Peloton can lose the customers who take their online classes to Apple free options. People take classes for the inspiration and guidance from the teachers. Before Apple there were plenty of free options so this isn’t new, fitness is and will continue to be a very competitive market.
Uber limits the amount of rides you can deny, i.e. you deny 5 rides in 30min they log you off the platform after awhile you get penalized. They want high acceptance rate.
Climate change is a red herring, air pollution is a clear and present danger. India and China have ignored this in the past and now they are making some efforts to correct course because people are dying from it.
They focus on the team because that’s the how startups raise money these days, investors figure they could always pivot to something else. Obviously this can be problematic especially when the founder(s) is good at raising money, see Wework