I wish them well, seeing that. As a customer they’ve been absolutely fantastic, hopefully they get their business model sorted out enough to maintain that long-term.
That can be a problem with any new company coming on to the market doing things better, but struggling with market realities. See the incredible cost Monzo’s foreign ATM use.
I see, as a customer, a lot of similarities in the service both companies offer me. I wish them both luck in maintaining it whilst making business models work for them. You, sadly, can’t burn through investment money (whether it be from VCs or a city council) forever; no matter how great your service is.
I’ll also add this is nothing too unique at all. Lots of new companies we love are burning through eye-watering amounts of money. There are a few results possible:
- They somehow balance it all and make it work long term (this is the ideal).
- They fail and we need to shop around as consumers (very unlikely for a bank or for a council owned energy supplier).
- They get bought by a bigger fish who can absorb that loss and those customers. This, so often, results in a drop in service quality and makes one want to shop around. It can work out tho. The purchase of ING Direct in the US by Capital One actually turned out great - Capital One kept what was great about ING Direct and added their own benefits too!
- Something else I’m missing?
The best we can do is give these companies doing things right our business and hope for the first outcome as often as possible!