Umair Haque / Bubblegeneration
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Saturday, August 19, 2006

Industry Note: Put Your 2.0 Where Your Mouth Is, Kiko Edition


Lots of buzz about Kiko going to eBay to sell - mostly disappointment and shock.

These sentiments surprise me. Let me try and explain why concisely.

0) Kiko didn't make billions, or disrupt a moribund industry. I feel your disappointment here. But the Kiko guys want to move on - that's their decision. There are still plenty of players in this space focusing on revolutionizing coordination, and doing fairly revolutionary things (Skobee, for example).

1) 2.0 is about making commerce better, cooler, more efficient - redefining economics by using markets, networks, and communities.

2) What could be more 2.0 than using a market - eBay - to sell a project you're tired of?

3) Would you prefer Kiko hired a boutique bank to shop it around (which they certainly could do, though any success is certainly debatable)? How 1.0 is that?

The point is that all the other alternatives are less efficient. By using a market, the Kiko guys can free up time for their next project, not pay the enormous fees an M&A shop might charge, etc, etc.

I fail to see anything at all wrong with this picture. I advise the Valley kru to chill out, stop obsessing, and go shopping or something like I did (and can I just say that I think these are the coolest shoes ever made - I always loved Memphis and esp the stupid bacterial pattern - but everyone I know hates them the way George Bush hates evil).

PS - No, despite what Paul Graham tells you, the moral of this story isn't about Google economies of scoping Kiko to death. It's that Kiko's innovation wasn't revolutionary or challenging enough.

If that doesn't make sense, think about it this way. There are costs to maintaining such a large service portfolio/such broad reach/etc for Google; not just scope economies. These costs are what they always are for larger firms - the loss of agility, speed, and innovative capacity.

-- umair // 2:08 PM // 5 comments


Comments:

The sell-through rate of products on eBay is way down, as is the traffic.

I wonder if Craig's List would be a better option for selling a business.
 

Those are definitely the coolest shoes ever!!

Don't you think that the story also shows how one of Google's added strenghts (innovations?) is how its programmes/services "make sense" together as an added value beyond the sum of parts?
// Blogger alberot // 2:46 PM
 

I think we ideally like to think web 2.0 is about making it commerce better, cooler, etc, but i think its more about sheer explosive manifestation of ideas to life. There are countless examples of people 2.0'ing just to make it. Its generation beta here, its dream up and realize 400 ideas and see how many stick.

2.0 has no defined mantra it is whatever the current edge tells you it is.

To me kiko is just another idea that stuck for a bit but didnt stick. Its a crowded scene, everyone in the beta scene knows it, how many betas are you in eh?
// Anonymous Anonymous // 6:28 PM
 

I think we ideally like to think web 2.0 is about making it commerce better, cooler, etc, but i think its more about sheer explosive manifestation of ideas to life. There are countless examples of people 2.0'ing just to make it. Its generation beta here, its dream up and realize 400 ideas and see how many stick.

2.0 has no defined mantra it is whatever the current edge tells you it is.

To me kiko is just another idea that stuck for a bit but didnt stick. Its a crowded scene, everyone in the beta scene knows it, how many betas are you in eh?

I think its great kiko had the gusto to plug the plug and stay passionate about the next idea. Do your investors right, see the writing on the wall and figure out how to stop the bleeding and get back on the scene with something new, meanwhile learn new tricks, code new things and keep on truckin.
// Anonymous dan // 6:30 PM
 

Hi,

In this context what do you think of Google buying Nevenvision and associated meme including the talk of Riya. Is nevenvision not revolutionary enough. Is Riya disrupting industry structure and doing ground breaking innovation.
// Anonymous Anonymous // 5:44 PM
 
 

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