The Millennial Urban Lifestyle Is About to Get More Expensive

I like the statement below. The point is that the capital market are currently subsidizing your Uber ride. This works until it doesn’t. One day the capital markets won’t be as generous and Uber & company will be in a bind. The business model of looking outside for cheap money won’t work.  One of the biggest reason these companies are where they are is access to mountains of cheap cash built on a promise that one day you will be profitable one day. I have a serious question: If you can’t generate internal positive cash flow after so many years of growth, let’s say like Uber and Wework, how successful are you?

If you wake up on a Casper mattress, work out with a Peloton before breakfast, Uber to your desk at a WeWork, order DoorDash for lunch, take a Lyft home, and get dinner through Postmates, you’ve interacted with seven companies that will collectively lose nearly $14 billion this year. If you use Lime scooters to bop around the city, download Wag to walk your dog, and sign up for Blue Apron to make a meal, that’s three more brands that have never recorded a dime in earnings, or have seen their valuations fall by more than 50 percent.

Source: The Atlantic, The Millennial Urban Lifestyle Is About to Get More Expensive by Derek Thompson

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