TEMU is estimated ( Link ) to be losing $30 per order. Its ad spending and shipping costs (1-2 weeks from China, expedited to U.S. delivery) are astronomical. One is left wondering how this business could ever be profitable.
TEMU is a notoriously bad actor in its industry. We see rampant user manipulation, chain-letter-like affinity scams to drive signups, and overall, the most aggressive and questionable techniques to manipulate large numbers of people to install the app.
TEMU is demonstrably more dangerous than TikTok. The app should be removed from the Google and Apple app stores.
Grizzly Reports (https://twitter.com/ResearchGrizzly) is "focused on producing differentiated research insights on publicly traded companies through in-depth due diligence."
Offering discounts to first-time customers is a fairly common sort of growth hacking. If Temu were a US company, we wouldn't even be batting an eye at it.
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A long writeup but very few facts:
Grizzly Reports (https://twitter.com/ResearchGrizzly) is "focused on producing differentiated research insights on publicly traded companies through in-depth due diligence."
This seems like low quality junk to me.
Many Direct-to-Consumer companies have the exact same model, get you hooked on the app and then raise prices.
Offering discounts to first-time customers is a fairly common sort of growth hacking. If Temu were a US company, we wouldn't even be batting an eye at it.
Except all the ones after those first couple of bullet points...
So basically like facebook?