Why Andrew Wilkinson has been losing money for the last 5 years #shorts

Name: Why Andrew Wilkinson has been losing money for the last 5 years #shorts
Uploaded: 2021-05-04T23:30:02+00:00
Duration: 50 s
Channel: Sam Parr
Description: In this short clip, Andrew Wilkinson explains why his company Medimap has been intentionally losing money for the past five years. He says the losses are…

4 May 2021 · 1 min

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In this short clip, Andrew Wilkinson explains why his company Medimap has been intentionally losing money for the past five years. He says the losses are a strategic investment to build a defensible network that creates a moat, making it hard for competitors to disrupt. Wilkinson uses an "airport business" analogy: the network is like an airport terminal where, once the stalls (services) are filled, the company can monetize the traffic by selling various products and services to users waiting in the lobby. He notes that currently the stalls are empty, but the plan is to start filling and monetizing them, leveraging the built network for future revenue streams.

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We keep investing in this business. A lot of people don't understand it. It's called Medimap. It's been losing money and we've been building out this network. And our thinking is once we have the network, there's a lot of really interesting things we can do with the network. It's going back to understanding a moat. No one can compete with this. We spent the last 5 years losing money and building the network, and now it's like there's no way to disrupt this and think of all the different things you can build in this. I always like to say we like to buy airport businesses. There's one airport in the city. If you want to go somewhere and fly, you've got to go and sit in the lobby for an hour. And when you're sitting in the lobby, I'm going to try and sell you a bunch of stuff. So I've got all the stalls and I can put in a massage place and I can put in a bookstore somewhere to sell sandwiches, whatever. And this is an airport business. And right now all the stalls are empty and we're going to start monetizing it and filling in all the stalls.