Originally Posted by
NineGturn
A little off topic and I appreciate the optimism but I always wondered how JSX was able to operate. It seems they are burning through investor dollars. The business model has been tried before and has never ever succeeded in the long term. If you do the math on the ticket prices and sales it simply doesn't work. If they pull through this current downturn in business and eventually become profitable it will be the first time this business model has ever actually worked.
Last I heard they are 50 to 100 million in the hole.
Please share the math, educate us. And share the basis for your statements...if any exist.
Every startup, by definition, burns investor cash to acquire market share it doesn’t have—because it’s a startup. Usually, not always, it’s equity, not debt. Most startups don’t qualify for, nor is it prudent to take on, debt. So how can a company funded by investors to spend money to acquire market share without debt be “in the hole”?
And what company has tried the Part 380 model before?
Again, any insight (and you’re covering a a lot) is appreciated ... but should be explained and validated. At least that is what my pedicurist’s husband’s cousin heard from his Lyft driver.