They are not profitable because they make bad business decisions.
Exactly this. Just like how reddit very quickly made enough in reddit gold sales to cover their server costs for decades, the only reason it’s operating at a loss is because they’re running it that way.
I can cite an example of it with an inventory based company. KIA sold their cars at damn near a loss in the US for a long time to get a good foothold. And it worked. Iirc they had a bogo on cars at one point even.
Exactly this. Just like how reddit very quickly made enough in reddit gold sales to cover their server costs for decades, the only reason it’s operating at a loss is because they’re running it that way.
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Can you cite an example where this has actually worked/led to a stable business model?
Amazon undercut like crazy and is utterly massive today. They’re basically the online shopping company.
Amazon is a goods-based business though, they ship massive amounts of inventory.
I can cite an example of it with an inventory based company. KIA sold their cars at damn near a loss in the US for a long time to get a good foothold. And it worked. Iirc they had a bogo on cars at one point even.
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