Government investment tax credits are a major contributor to Solar City’s ability to offer competitive rates with utilities. Solar panel installation is subsidized through the creation of tax credits and historically cash grants. Investment tax credits allows solar developers to offset 30% of their costs. SolarCity is not just securitizing the consumer PPAs, but also the tax credits created to tax equity investors who offset their taxable income with the credits.
Agree with AWang and wonder if there is really a competitive moat for Birchbox given the recent entrance of Sephora into the market? Seems to me an easy win for Sephora given its 1,900 stores and existing rewards program.
Interesting post, Jean. I found the model very clever with the real-time studio partners pricing based on convenience and demand and the resell of excess inventory. Seems to me that Class Pass is insulated from consumer trends in exercise by diversifying across 7,000 studios, but faces a trade-off with this diversification (and the 3 classes/month limit) in its ability to capture the customer that follows a particular studio or instructor.
Thanks for the post, Andy! Agree your thoughts around newspapers hemorrhaging money, except for the WSJ. Perhaps what drives WSJ’s profitability is the ability for customers to expense subscriptions as business expenses and the company’s differentiated business content.