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Venture Predation

papers.ssrn.com

201–210 of 231 posts

Re: Venture Predation

#201
post #148
post #132

Earlier quoted context omitted.

I care because once Amazon kills all their competitors then they are the only ones selling diapers. And then they can charge 10 bucks per diaper.

And then someone sees that people are buying diapers for 10 bucks and starts selling them for 5.

What they will see is “geeze, if we try to sell diapers Amazon will crush us”

Re: Venture Predation

#202
post #132

Earlier quoted context omitted.

I care because once Amazon kills all their competitors then they are the only ones selling diapers. And then they can charge 10 bucks per diaper.

Yet here we are in reality where they did kill the diaper competitor and we have MORE retailers shipping diapers at a competitive cost.

For now, and only because bezos allows it.

Re: Venture Predation

#203

Earlier quoted context omitted.

Why wouldn't factory machine hydraulics for the auto industry be more important then an individual's toilet?

Because poor sanitation is a disease vector that can kill people and ruin communities. A working toilet is an unmitigated good. Cars on the other hand have a much more questionable value proposition. They turn cities into parking lots shrouded in smog and significantly contribute to climate change. Even if cars only contributed in positive ways, they're still not necessary to a functioning society the way that sanita…

Well considering all UN countries explicitly authorize auto purchasing, ownership, resale, etc., and that the governments of all the major countries actively help their own auto industries, I would say your a bit outvoted on this opinion.

Re: Venture Predation

#204

Earlier quoted context omitted.

> Who cares what he did to some diaper companies. Going out on a limb here, but I'd say the diaper companies.

What happened to the diaper companies? Feel like I see the same brands of diapers still. Procter and gamble, Kimberly Clark, etc.

So...your concern is for branding continuity?

Re: Venture Predation

#205

Wasn't this dressed up and sold to the masses as blitzscaling just a few years ago? I like the term "venture predation" better.

I talked to a fair share of late stage VCs and they like to think of themselves as “category king makers” - the term itself reflects the general sense of humbleness in the VC community. Besides the “venture predation” described in the paper “category king making” also entails cutting off potential competitors from funding. The theory is that once a Softbank or Sequoia have chosen their horse other VCs will be discouraged to invest in the same category as it “is taken”. And many times the VCs actually act behind the scenes and actively discourage their peers to seek an investment in a competitor of their “category king”. It truly is a disgusting game to watch once you have been close enough. VCs for better or worse are the essence of the tech ecosystem. Make the world a better place. my a* :)

Re: Venture Predation

#206

Earlier quoted context omitted.

What happened to the diaper companies? Feel like I see the same brands of diapers still. Procter and gamble, Kimberly Clark, etc.

So...your concern is for branding continuity?

No, my concern was the claim that something happened to the diaper companies is false.

Some middleman website might have lost out on being able to sell for more money to Walmart, but that was their choice to not to pursue a deal with Walmart.

I am guessing what they were probably concerned about was guaranteeing themselves cashing out at least at Amazon’s offer because if Walmart found out Amazon was backing out of the deal, then Walmart would have had the power to push the price down.

Either way, diapers.com was going to lose to Amazon/Walmart/Target/Costco in the long run, so if they were getting a high valuation simply for being a popular website as online shopping was ramping up, then their best move was to sell while the iron was hot.

Re: Venture Predation

#207
post #185

Earlier quoted context omitted.

Netscape was payware in the beginning? Not sure how that's non-existent? Even after they were forced to go free by Microsoft, they were selling servers which are the compliment of browsers.

Did anyone actually pay for Netscape?

Yep, just about everyone who wanted to connect to and browse The Net over dialup in the mid-90s. It was conveniently sold at Price Club (which was eventually merged into Costco of today).

Re: Venture Predation

#208
post #185

Earlier quoted context omitted.

Did anyone actually pay for Netscape?

Yep, just about everyone who wanted to connect to and browse The Net over dialup in the mid-90s. It was conveniently sold at Price Club (which was eventually merged into Costco of today).

Huh, I remember downloading it for free.

Re: Venture Predation

#209
post #208

Earlier quoted context omitted.

Yep, just about everyone who wanted to connect to and browse The Net over dialup in the mid-90s. It was conveniently sold at Price Club (which was eventually merged into Costco of today).

Huh, I remember downloading it for free.

Yes, the free downloads came later! Originally Netscape Navigator was a premium product. My dad paid $35-$50 dollars for it at Price Club. This amount is close to $80-$100 in today money.

Re: Venture Predation

#210

Earlier quoted context omitted.

I think the problem is that making a user or service provider create an account on an app isn't the moat that they think it is. A lot of these market domination moves only last as long as the VC money then the competitors are more than happy to swoop back in. Consumers are super fickle, and I will happily check a different app to see if I can save a dollar on a $10 car ride

You aren't the norm. If you were then Lyft would be doing much better. How many rideshare apps do you check? 5? 10? My guess is maybe once in a while you check Lyft if uber seems high. That's what I do.

I almost always check both apps, but to be honest I don’t actually rideshare much so I’m always curious about pricing and options(I don’t live in a place where there are 5 rideshare options).

Or I just use google maps which gives me the full menu of available options and how much they cost including scooter and e-bikes as well as transit since I’m normally just interested in the fastest option which is frequently transit.

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