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Technology: Network economy – Unicorns and donkeys Pt. IV

Inability to reach scale is killing the delivery start-ups The highway of 2016 is being littered on a daily with the crashes of start-ups that have been so focused on obtaining huge network scale that they forgot the basics of economics. Almost exclusively, it is the start-ups that involve pick-ups or drop-offs of an asset that have got into trouble. This is because of the high level of fixed costs that these companies incur as a result of requiring lots of employees or contractors to do the picking-up or dropping off.


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