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Stealth • 4m

In 1999, Webvan, an online grocery delivery startup (us zamane ka zepto), was scaling at a breakneck pace. Backed by millions in venture capital, they expanded to multiple cities in the US, built massive warehouses, and hired hundreds of employees, aiming to dominate the market. But by 2001, Webvan was bankrupt. What happened? They scaled too fast, too soon. Instead of refining their business model and understanding local markets, they overextended themselves. Customer demand wasn’t growing as quickly as they had predicted, and operational costs skyrocketed. Ultimately, they couldn’t sustain the rapid growth. Lesson? Stay small, at least in the beginning. 1. Focus on perfecting your product or service. 2. Understand your customer base. 3. Create a solid foundation before chasing rapid expansion. Scaling too fast can lead to cash burn, operational chaos, and eventual collapse. Growth is exciting, but growing at the right pace is what sustains businesses in the long run.

6 replies14 likes

Replies (6)

Phanirockzzz

Stealth • 4m

the problem is more on timing of this startup. maybe it's too early that people can't adapt well. but to seriously establish this kinda business. I feel fast scaling is required. Otherwise you will become an underdog and another will copy your work and may progress much greater.

1 replies1 like

Anonymous 1

Stealth • 4m

Arre yaar, India mein toh har startup ka yahi haal hai. Funding mile nahi ki expansion shuru. Tier 1 se Tier 2, Tier 2 se Tier 3. Par basic model hi profitable nahi hai toh kya ukhaad lenge?

1 replies2 likes

Anirudh Gupta

Stealth • 4m

physics wallah too making the same mistake

1 replies1 like

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