Zillow was overpaying for homes, but also charging the seller a 7% “fee” that it kept itself?
The seller in such circumstance would demand an extra 4.5% as the difference between Zillow’s fee and the normal buyer agent fee.
This inflates what Zillow actually paid and makes its losses also look larger.
We shouldn’t be too shocked Z is losing a lot of money. That’s the Silicon Valley DISRUPTION! that investors are lining up to subsidize.
Lyft just reported Q3 2021 results, and revenue is still well below Q3 2019. They also have diluted shareholders by 10% by issuing more shares, have dissipated another 1.5 billion from their balance sheet, and lost “only” $60 million because they booked a 1-time $125 million gain on selling their self driving assets to Toyota.
Despite another quarter of massive losses, they are up 12% afterhours and higher than 2019 when the company had more revenue and more customers.
