This is by far the meatiest and most must-watch post from our CEO Supper Club on the sharing economy — particularly for any entrepreneurs eyeing this space.
In this clip, our CEOs talk candidly about the biggest problems and challenges they’ve had building these marketplaces. As Bo Fishback of Zaarly puts it, “Everyone says marketplaces take ten years, local takes ten years, peer-to-peer is hard and all four of us are taking on all three of those things.”
There was a debate on how you expand city-by-city and how quickly you should try. There was a conversation about how clones are nothing but distracting. Unlike the Groupon era, this group believes they should be tuned out and allowed to flame out on their own — not chased and competed with madly around the planet.
But the most interesting part of the segment was towards the end, when all of these pains and challenges culminated in a takeaway I didn’t expect: Unlike Ecommerce 2.0, Valley-based companies just have a massive, massive advantage over everyone else.
There’s no doubt about it: Everything these companies are trying to do is expensive and hard and you don’t merely need big money. You need patient money. (Hence, Fishback’s quote in the headline about what John Doerr and the honey badger have in common.)
Want more evidence? Listen to Leah Busque of TaskRabbit’s war stories about raising money on the East Coast vs. the West Coast. Spoiler: She moved the company from Boston to the Valley for a reason.