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AustenAllred's profile
Austen Allred
Austen Allred
Austen Allred
Verified account
@AustenAllred

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Austen AllredVerified account

@AustenAllred

CEO @LambdaSchool (YC S17): A CS education that's free until you get a job. I have made remarks that I do not agree with.

San Francisco, CA
lambdaschool.com
Joined December 2010

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    1. Austen Allred‏Verified account @AustenAllred Jun 13

      How do scooter companies stop from being completely commoditized? Uber has lock in of drivers that took Lyft a long time to compete with. I’m almost definitely underthinking it but don’t know how. Thoughts?

      11 replies 1 retweet 23 likes
      Show this thread
      Austen Allred‏Verified account @AustenAllred Jun 13

      Why can’t I start a scooter company tomorrow, go take 8000 scooters to city x, and compete with Bird overnight? Am I missing something?

      6:11 AM - 13 Jun 2018
      • 18 Likes
      • Roshan Mirajkar Rocky Pruitt Kiren Srinivasan Spencer Schneier Vidhu Dashora Boon🎃mi👻l Richard Sinn 🍔 Ryan Petersen Jessica Waite
      11 replies 0 retweets 18 likes
        1. New conversation
        2. Ryan Petersen‏Verified account @typesfast Jun 13
          Replying to @AustenAllred

          You are missing the vast sums of capital with nowhere to earn a return. Interest rates are so low that lending it doesn’t make sense. Might as well try some crazy shit.

          2 replies 0 retweets 8 likes
        3. Nathan Baschez‏Verified account @nbashaw Jun 13
          Replying to @typesfast @AustenAllred

          One really excellent place to allocate capital is investing in Lambda School students ;)

          1 reply 0 retweets 0 likes
        4. Austen Allred‏Verified account @AustenAllred Jun 13
          Replying to @nbashaw @typesfast

          :) luckily Ryan has done that

          1 reply 0 retweets 2 likes
        5. Austen Allred‏Verified account @AustenAllred Jun 13
          Replying to @AustenAllred @nbashaw @typesfast

          How long do you have to wait after a fundraise to fundraise again in 2018? 3 weeks? 3x valuation bump? Judging what I see that’s about right

          0 replies 0 retweets 2 likes
        6. End of conversation
        1. New conversation
        2. Patrick McKenzie‏ @patio11 Jun 13
          Replying to @AustenAllred

          I suspect that the business is much more operationally intense than software people model it as and that the true margins on a one-city operation don’t pay for the e.g. engineering team you need to staff to play ball.

          1 reply 0 retweets 12 likes
        3. Wes Winham‏ @weswinham Jun 13
          Replying to @patio11 @AustenAllred

          High capex. Fundraising becomes a competitive advantage

          1 reply 0 retweets 3 likes
        4. Patrick McKenzie‏ @patio11 Jun 13
          Replying to @weswinham @AustenAllred

          High capex relative to software but literally everything has high capex relative to software. If you compared it to e.g. real estate development it’s almost laughably low. I think if there is a barrier it’s going to be “hands on atoms eat the margins; brains and bits go hungry.”

          0 replies 0 retweets 3 likes
        5. End of conversation
        1. aidan torrence‏ @aidaman22 Jun 14
          Replying to @AustenAllred

          No. In Charlotte, Bird and Lime are competing and Lime literally just poured in another couple hundred scooters in the past day or so and has already gained an advantage over Bird. And Lime is funding as well as Bird.

          0 replies 0 retweets 1 like
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        1. Connor V.‏ @ConnorVO Jun 13
          Replying to @AustenAllred

          Initial lock-in of users based on which app they downloaded. Most people don’t want 4 scooter apps, will probably just stick with first one downloaded.

          0 replies 0 retweets 1 like
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        1. Isaac Krasny‏ @isaackrasny Jun 13
          Replying to @AustenAllred

          I wonder how much of it is premised on controlling demand in the form of making the scooters part of a larger transportation network - if you use Uber for car service, you'll use Uber scooters too.

          0 replies 0 retweets 1 like
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        1. Chang Sun‏ @changrybirds Jun 13
          Replying to @AustenAllred

          Building habits among users probably matters too - when rides are that cheap there's less of an incentive to shop around if you're already used to using a particular provider that you know has a large and reliable network.

          0 replies 0 retweets 0 likes
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        1. Dmitry Shevelenko‏ @dmitry140 Jun 13
          Replying to @AustenAllred

          The biggest misunderstanding of Uber’s moats is the assumption that it’s the supply-side first mover and capital and advantage that mattered. It’s always been the demand-side that gave Uber the edge and why the 2017 brand/reputation crisis was so devastating to the business

          0 replies 0 retweets 0 likes
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        1. William Zeller‏ @wzeller42 Jun 13
          Replying to @AustenAllred

          Maybe it’s the data you generate on your users to have scooters there for them when/where they need them.

          0 replies 0 retweets 0 likes
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        1. William Saar‏ @saarw Jun 13
          Replying to @AustenAllred

          Need to convince users to download a new app instead of riding a Bird with the app they've already installed and are familiar with?

          0 replies 0 retweets 0 likes
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        1. Shobhit Datta‏ @shobhitd Jun 13
          Replying to @AustenAllred

          Not a strong argument - but saw some claim that cities will limit the number of scooters, so first mover advantage counts.

          0 replies 0 retweets 0 likes
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        1. Andreas Klinger  ✌️‏Verified account @andreasklinger Jun 13
          Replying to @AustenAllred

          That's the main Q most have. Repairs and install base is ususlly named as counter arg. But meh 🤷

          0 replies 0 retweets 0 likes
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