November 18, 2013 – Christopher's Business Blog

Snapchat rejects 3 billion dollar buyout from Facebook

The popular messaging app that allows people to send pictures for a set number of seconds was recently offered a 3 billion dollar buyout from Facebook. However, the CEO Evan Speigel rejected the offer from Mark Zuckerburg and Facebook because he believes his company may even be worth more. Even a chinese firm has valued FB at around 4 billion. So how can a company that makes no revenue be worth so much money? Many investors are skeptical of companies such as snapchat because they have short life spans and they have no income to make money from. Twitter faced many of the same issues, however they were able to integrate advertisements to create revenue. Something that may not be as simple for Snapchat.

Snapchat faces many problems but gaining new users has not been one. Snapchat sees as many photo uploads as FB and more than instagram and flickr together. The fact is Snapchat’s user base is extremely big and shows no signs of slowing down, which may account for one of the reasons why it is valued at so much despite only being started a little over year ago. It will be interesting to see what Snapchat plans on doing now that it has rejected such a large offer from Facebook. Will the company be able to grow and expand even more or will it slowly die out and depreciate?

Sources:

http://www.businessinsider.com/snapchats-valuation-if-for-real-2013-11

Cars 2 Go: 38¢/min all inclusive rent-a-car

Introducing the newest low cost rent a car, Cars 2 Go offers rental cars at an extremely affordable price. Instead of charging people by the day or the week, Cars 2 Go offers the consumer a vehicle with gas and insurance included for the low price of 38¢ a minute. The great thing is if you’re visiting a city you can pick one up in the morning drive around and then leave it parked in another Cars 2 Go designated parking area. This is great because if you go out drinking with friends or into vancouver and you don’t want to drive home for whatever reason you can just find a spot in the city and drop the car off their.
They introduced a new way to rent a car that has been extremely successful in urban areas such as Vancouver and Toronto. They have proved that their business model works and can be profitable. By having a fleet of smart cars they enable themselves to keep their costs down. They rely on economies of scale to buy smart cars, that are very fuel efficient and don’t require a lot of gas.

Cars to go aims to:

“Alleviate congestion – The average car goes unused for more than 22 hours a day. But with car2go’s point-to-point, on-demand model of car-sharing, our cars are used multiple times per day.
Reduce emissions – The car2go network is comprised of smart fortwo cars, which are among the most fuel-efficient non-hybrids in America.
Maintain Quality of Life – People who live in car2go cities have access to use a car whenever they want or need a car, without having to pay premium prices for parking, fuel, maintenance and insurance.”

Sources:

car2go: Get to Know the Mysterious White Cars Parked All Over Denver

http://www.Car2go.com/