Wake up to Mike Allen’s AM, the 10 stories driving your day

Stories

'Uber, for laundry:' A cautionary tale

An anonymous former exec at Washio — which tried to be Uber, but for laundry — had this to say to The Information's Tom Dotan about the company's downfall:

QuoteIf you get really big and spend a bunch to acquire customers and lose money every time you order and the majority come back, you end up in a precarious situation.

Why it matters: It's a cautionary tale for the Ubers and the Postmates of the world, who hope their size will make up for the money they lose to customer giveaways. Uber lost more than $2 billion in the first three quarters of 2016.

But Washio's story shows that growth isn't a panacea — especially when customers expect discounted prices.

More stories loading.