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This means they must be very careful because if they fail in a new market it could really put financial distress on the company.
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There are several underlying challenges with the concept of car-sharing. First, the concept has an average to early expenditure curve. This type of curve implies most of the expenditures are needed in the initial stages of development. Chase needed $1.3mil to enter the Boston market only. This required a lot of up front work, refining the technology that would be used with the concept, and getting investor buy-in...
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