Who is gaining from Chipotle’s loss?

Chipotle’s business has been sliding ever since some of its locations were linked to E.coli and norovirus outbreaks. While news of the outbreaks peaked, sales[1] dipped. 45% of people who transacted with Chipotle between August and October 2015 have not returned since the outbreaks. These churned consumers tend to dine out about 4 times per … Continued

Lyft vs. Uber: Surpassing $1B ARR

With today’s announcement that Lyft has reached an annualized gross revenue run rate of $1B, TechCrunch draws the inevitable comparison to Uber: Lyft’s most recent valuation: $2.5 billion Uber’s valuation when it was valued at similar financial metrics: $3.5 billion You will note that those are not the same numbers. Here you can speculate. Was … Continued

The lasting impact of Adobe’s move to subscriptions

When Adobe introduced its Creative Cloud subscription service in April 2012, it was unclear how consumers would respond. Would they really adopt Adobe’s new online service over the traditional boxed product? Following its release, Adobe’s average transaction value dropped from $93 in March 2012 to $40 one year later, reflecting the introduction of the lower-priced … Continued

People ride Uber more than you think

Over the past three years, Uber has grown more than 35x in the US alone: Their customers have become more engaged over time: Interestingly, highly engaged riders (those averaging 12 or more rides per month) spend less per ride than infrequent riders: And yet, those highly engaged riders have grown to make up more than … Continued