Below is a link to an article comparing the modern pet food provider, Chewy.com, with the defunct Pets.com from the Dotcom boom twenty years ago. The article itself isn’t that important, you actually don’t need to read it, but the gist is many investors remembered Pets.com went bankrupt and wouldn’t invest in Chewy.com because it’s in the same space. Of course, today, the revenues Chewy.com has are incomparable to those of Pets.com twenty years ago because the conditions have changed significantly.
Twenty years ago the following was true:
- Internet speeds were terrible and it impacted customer experience on a website
- Social media wasn’t mainstream to connect people sharing great experiences
- Most people didn’t have the internet in their pocket at all times
- Many people were still scared to put a credit card number in online
Those are just a few differences that came into my mind in a couple seconds. The people who wouldn’t invest in Chewy.com were perhaps led astray by their knowledge of the past. Sometimes experience is a liability. It’s always worth check in on what you are missing through your previous experiences.