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Alex Immerman
2,298 posts
Alex Immerman
@aleximm
Software is eating the world, but I’m eating @saltandstraw. My initials were AI before it was cool. GP @a16z growth fund.
Joined August 2010
Waymo's market share is now equal to Lyft within SF. Incredible. Network effects is one of the best sources of defensibility. But it's proven to be not that important in ridesharing. You need a minimum network size, but once you have that, there are diminishing returns. In
- "The battle between every startup and incumbent comes down to whether the startup can get the distribution before the incumbent can build the innovation."
- We are entering the new SaaS era, moving from Software-as-a-Service to Service-as-a-Software. Until now, software access has helped analysts do their job better. In finance, Bloomberg or Capital IQ improves employee productivity. But in the not too distant future, an AI agent
00:00 - Main Street: Thank God Google’s search business is so profitable, it can forever subsidize my Waymo rides. Wall Street: Waymo has positive unit economics in SF. -- JMP research report: Waymo has 63% cash contribution margins. The vehicle & sensor capex is large
- Morgan Stanley: Waymo is a real business worth modeling. Uber and Lyft are quickly losing share, so they better partner up.
Main Street: Thank God Google’s search business is so profitable, it can forever subsidize my Waymo rides. Wall Street: Waymo has positive unit economics in SF. -- JMP research report: Waymo has 63% cash contribution margins. The vehicle & sensor capex is large - Waymo's rides have ramped way faster in Austin than prior city launches. By the end of its first month, Waymo facilitated ~20% of Uber rides within its Austin operating zone. Two key differences vs earlier city launches: 1. No waitlist or slow roll. Waymo is launching with
- OpenAI at $3.4b runrate revenue. Meanwhile, Accenture added $3.6b runrate GenAI bookings just last quarter.
BuT A.I. CoMpAnIeS DoN't HaVe ReVeNue ... - Most thought Bilt was a case of VC subsidies: "use this card and earn points on rent, sponsored by VCs!" In reality, its growth is subsidized by the third largest US bank. Wells is losing $10m/month on Bilt. But, how did Wells get here? The credit card market is saturated -
- Half of Delta's profits come from its Amex partnership, and it's a win for Amex too. Co-brand credit card partnerships can work. Delta is as much a fintech as an airline. Its Amex co-brand credit card spend is approaching 1% of US GDP. Amex pays Delta 4% of credit card spend,
- Yesterday I called Penn and asked for a refund on my 2023 donation. I have loved Penn for as long as I can remember. It prepared me for my career and gave me lifelong friends, my wife, and incredible memories. But I can no longer support the moral bankruptcy of its leadership.
- During team meetings, @pmarca loves to remind everyone that I am a Harvard MBA. Now I know for certain that has never been a compliment.
- One of the many reasons we were excited to back @Kalshi is @mansourtarek_ @luanalopeslara are customer obsessed, not competitor obsessed. This team is building day & night for their customers, and their market-leading $50b+ annualized volume is the output. 💚💚
- Who says you need the Apple + Google App Stores? @AxieInfinity has reached incredible scale w/o them: - Grew from 38K daily active players in April to 1.8M in August - $2B+ volume traded on its NFT marketplace @a16z is amped to partner with @SkyMavisHQ! a16z.com/2021/10/05/inv…
