Gurley argues daily deal business value is inversely tied to platform rake, like a casino.
“The thing that strikes me about the deal business is that the value to the customer is a direct function of the rake of the platform or the margin the platform maker takes.”
Gurley argues daily deal platforms with lower take rates will inevitably attract more customers than high-rake competitors.
“In other words if you had a casino on one side of the street that took a 50% rake and another one on the other that took a 10% rake, eventually all the customers are gonna go to where the rake's 10%. Right?”