> Swoopo’s run out of gas — not at all surprising since its business model is built on the willingness of bidders to lose money on lost auctions. If you don’t win, you still paid for every bid you made.
How does this make sense? The business model is to make money hand over fist on "stupid" consumers who are willing to pay for nothing the hope of winning something for below retail value.
HOW on earth did they lose money and how on earth is it unsurprising? My mind is blown that they're filing for bankruptcy.
Anecdotally I know 2 people who signed up to Swoopo, paid £10 for bids but then won nothing. That's £20 they made at £0 cost to themselves.
How does this make sense? The business model is to make money hand over fist on "stupid" consumers who are willing to pay for nothing the hope of winning something for below retail value.
HOW on earth did they lose money and how on earth is it unsurprising? My mind is blown that they're filing for bankruptcy.
Anecdotally I know 2 people who signed up to Swoopo, paid £10 for bids but then won nothing. That's £20 they made at £0 cost to themselves.