Monday, November 17, 2014
Rocket Internet AG. Half1 2014 financials; they are losers, NOT proven winners
Rocket's "proven winners" are proven losers when it comes to trying to make a profit.
For me it seems only a big Ponzi scheme, a big bubble full of dark smoke. I suspect no one of those companies are designed to be profitable ever. They have big losses because they sell below cost to gain traction. All cloned companies seem like bubbles.
If you want to replicate a big success in Brazil, it will be as hard as the same to replicate it in all European countries, but in this case with 1/8 of population and the majority of the persons DO NOT own or WILL NOT use a credit/debit card to buy online! They will prefer to research online and then buy offline.
The same for Africa, and perhaps the same for Russia. Many if not most, USA, Canada or European businesses models are unfeasible in Latin American countries! Perhaps the same situation for Africa, Russia or even Australia.(transportation costs could be 10 times bigger than Europe)