But as their promises soared, their profits didn’t. It’s easy to spend all day riding unicorns whose most magical property is their ability to combine high valuations with persistently negative earnings—something I’ve pointed out before. If you wake up on a Casper mattress, work out with a Peloton before breakfast, Uber to your desk at a WeWork, order DoorDash for lunch, take a Lyft home, and get dinner through Postmates, you’ve interacted with seven companies that will collectively lose nearly $14 billion this year. If you use Lime scooters to bop around the city, download Wag to walk your dog, and sign up for Blue Apron to make a meal, that’s three more brands that have never record a dime in earnings, or have seen their valuations fall by more than 50 percent.
I think many of these companies are about to crash and burn. It’s just not sustainable to keep going back to investors for more money with little or no prospect of making a profit. These unicorns are bubbles on the edge of bursting, and many will.
WeWork, for example, pulled out of a planned IPO (failed IPO), they are cutting up to 25% of it’s employees, Goldman Sachs announced an $80 million loss in their WeWork investment, … this is just not sustainable.