alt Hacker NewsThe use of 'loss leaders' has a long history, so is your point that Temu's use of loss leaders may be illegal?*
(*I poked around a bit, and this may be possible, especially in California.)
The use of 'loss leaders' has a long history, so is your point that Temu's use of loss leaders may be illegal?*
(*I poked around a bit, and this may be possible, especially in California.)
Illegal? Hell no. Spending VC money to capture a market and drive out the inefficient incumbents is a genuinely good plan. Market disruption is a massive net benefit. I just don't think it'll work in the case of Temu, and anyone who looks at the prices and think "Wow, that's cheap!" isn't including where a chunk of the money is coming from.
I guess the same people were surprised when Uber started raising their prices too.