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So here's the business model: we're going to incur huge capex costs to build a fleet of AVs that serve... people who can't afford to buy their own vehicles. Sure, there are busses and taxis and Lyfts out there but we're different because... well, we have AEVs (Autonomous Electric Vehicles) and despite the lack of charging stations and the time required to recharge, this is super cool even though, well, the electricity doesn't actually come from renewables so we're still emitting CO2. And we're low-margin because of our high capex and opex while our customers can't afford to pay much. But hey, it's a visionary business and we all know (i) VCs will pour billions into loss-making companies, and (ii) we're super cool. So everything is great. Except when the bubble bursts and we basically have no route to profitability....

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Allan Milne Lees
Allan Milne Lees

Written by Allan Milne Lees

Anyone who enjoys my articles here on Medium may be interested in my books Why Democracy Failed and The Praying Ape, both available from Amazon.

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