Sustainable ways to grow cash-burning marketplaces

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Uber burned through US$25 billion of cash over 13 years before recording its first quarterly profit in 2022, vacation home platform Airbnb lost US$1.2 billion in the year ahead of its 2020 IPO, and Walmart-backed Indian e-commerce outfit Flipkart burnt US$3.7 billion of investor’s cash in 2022.

"We have probably all seen many business cases where companies burn cash to grow their marketplaces in the early stage,” says Kevin Chen Hongfan, Assistant Professor of the Department of Decisions, Operations and Technology at the Chinese University of Hong Kong (CUHK) Business School.

The content of this article has been produced by our advertising partner.] Amazon’s three-decade journey from a Seattle garage to a US$1.8 trillion market cap demonstrates the almost limitless potential of two-sided marketplaces in the internet age.

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Article Details

Author / Journalist: Advertising partner

Category: Technology

Markets: Hong KongChinaIndia

Topics: Trillion Us$1 Business Marketplaces Costs Amazon’s Demonstrates Concept Two-sided Cash Billion

Source Website Secure: Yes (HTTPS)

News Sentiment: Neutral

Fact Checked: Legitimate

Article Type: News Report

Published On: 2025-01-09 @ 00:00:15 (15 hours ago)

News Timezone: GMT +8:00

News Source URL: scmp.com

Language: English

Article Length: 263 words

Reading Time: 2 minutes read

Sentences: 9 lines

Sentence Length: 30 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © SCMP

News ID: 24979275

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