> So you get the steep 57% savings of 3-year no-upfront RIs with none of the commitment (you can sell them back to us anytime after 30 days) … We make money off a 20% Savings Fee

Isn’t this business model fundamentally flawed? And not profitable (unless a customer uses you for > 29 months)

Because ONLY companies who plan to use your service for less than 29 months (the break even of a 3 year contract where you keep your 20% cut), should be using your service otherwise it’s just cheaper for them to call up Amazon and get their own 3year RI contract.

Meaning, you’re always going to be in a situation where a customer is going to sell back their RIs and you’ll become unprofitable.

Said differently, you’ll only be profitable if a customer uses you for more than 29 months.