The ultimate problem here with all these startups like this is the financial strategy.

That strategy is precisely: Get big fast. That means hire a bunch of engineers, build out an expensive infrastructure, consume a lot of office space. Sell.

Nowhere in that strategy is: Earn a lot of money. Do it cheaply.

The VC world doesn't care about earnings. They don't care about profit. The value of a business to VC only comes when it is sold to someone else. You don't need something really good to sell it to someone else. You just need someone to believe it is worth the amount of money you want to sell it for.

The problem with that strategy now is that the public is wising up to them. We ain't your fool anymore VC. Go home.