Business Models & Unit Economics~25 min
Does One Customer Make You Money?
A meal-kit startup is growing 20% month over month. Revenue chart goes up and to the right. Champagne.
Then someone in finance does napkin math: acquiring a customer costs $90 in ads and discounts. The average customer pays $60/month, food and delivery eat $45 of that, and half of all customers cancel within three months.
What is this growth actually doing to the company?