Zip Profitability

If zip would have been a Capital Intensive company with prospect of $1 billion in revenue within a year or so, do the rampers realise the Capex would have been at least $5 billion. Zip doesn’t even have 1 percent of that.

Now, the rampers would argue that zip has huge OPEX...yes you are right, just take away the portion of OPEX which contributes to the revenue year after year plus the one time expenditure and expansion cost which also contributes to revenue year after year then I think zip is already profitable.

Contribution margin determines the future of any Capital Intensive investment however in the service sector employee cost which is the most significant cost is not possible for allocation to the long term and booked in the year itself is the main reason for zip showing a loss.