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DNA testing firm 23andMe files for bankruptcy
(www.reuters.com)
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this post was submitted on 24 Mar 2025
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How on Earth did they manage to fuck this up?
They were the leading firm in a field where having the most data makes yours the most accurate tests. Their product sold for hundreds of dollars a pop, with practically zero marginal costs to run the tests. And they were really popular, selling like hotcakes.
It's insane just how astoundingly incompetent upper management can be sometimes.
They were being sued in the past for privacy breaches, they probably are in more trouble financially n than what's being reported?
Apparently they were just there to sell your genome data once you submit it, also there's no repeat customers since once you get your results you aren't going to get another one.
This article explains it better"https://www.standard.co.uk/news/science/23-and-me-dna-test-collapse-b1213426.html"
Good article. It was fundamentally not a good business model. You have to acquire new customers constantly just to keep the lights on, it’s unsustainable. Adding on top of that the expectations from investors to grow every year, and the collapse we see now is guatanteed.
I see they tried to diversify, that could have helped, but without a recurring revenue stream at the core of your business, you cannot become the big company they wanted to be.
i was comparing it to THERANOS, more or less it was a scam from the start. Having someone like british pharm company glaxo-kline smith access to data without consent is just asking for trouble.
Yes, just terrible management. They could have just made good money, but no, there has to be more. So excessive greed at any price - now it's just bankruptcy. But I'm sure that won't bother the senior management: they've already put their millions in a safe place and will simply move on. The next company that needs their outstanding leadership is bound to come along...
No returning customers, due to the nature of the business. It's dead from the start.
I'm not sure what would make you think the "customers" for an enormous DNA database were the people providing the DNA.
Those people were just paying to be the product.
people get born every day
I don't. It's only happened to me once.
A person is born every day.
You are not born every day.
Seems clear that you must not be a person.
It happened to me yesterday and now I hear it only happens once?
Smh my head.
Currying won’t save you
Right, but the data you get from that test is pretty broad. One test will create a background for an entire family. You only need to do one for one child. Or if both parents have one, or a sibling of both parents have done one, the children of that pair also no longer needs a test to see their background.
It's not just about background though. Could also filter the results for genetic markers of medical conditions, something that may differ between individuals.
true but after the enormous initial boom they would have reached an equilibrium of a small trickle. the question is if that small trickle is enough to sustain a company on its own, so apparently not.
People that would presumably already know their lineage since their parents already took the test.
It can't be just that, right? There are loads of successful products that any given person only ever buys once.
Sure, list five
That's easy! 1: Coffin 2: Headstone 3: septic tank 4: bad parachute 5: cemetery plot
There's, uh, a bit of a theme with these though.
everyone is guaranteed to buy death/funeral related stuff, not everyone wants a DNA test. Also all of that crap (headstone, funeral service, coffin etc) is bundeled together in a massive payday, not to mention funeral places tend to price gouge the bereaved. So a single death is a much bigger payday than a single DNA test.
As for the other products you mentioned, i doubt any of those companies literally only sell those individual products. They probably diversify to other products and services too.
Come on. Any "buy it for life" product will fall in that category. Safety razor for example.
Ah, you mean the original "razor and blades" business model that ensures repeat customers.
(Yes, I'm aware that many people who use safety razors these days are not necessarily buying from brands that make both the razor and the blades, I am such a person myself, I'm somewhat joking on that)
But even in the realm of "buy it for life" items, you can still end up with repeat customers. Maybe you want a second razor for your travel toiletry bag, or to keep in your second bathroom. Maybe you just see one that looks cooler, or the handle is more ergonomic, or the way you change the blade seems more convenient.
And BIFL items still do sometimes get lost, stolen, given away, thrown out, or sometimes even broken and need to be replaced.
And unless the world's population starts shrinking, there will always be new shavers hitting puberty who will eventually need their own razor.
With a DNA test, unless you're questioning paternity or testing for specific genetic traits like cancer risk and such, once your parents have taken a test, you and your siblings don't really need to, you know what your parents are so you know what you are.
Companies that sell safety razors (or whatever buy-once product) probably also do lots of other stuff to diversify.
A headstone, grave, urn, wedding dress, and any outfit used in a religious ceremony.
I know several people that have bought more than one wedding dress.
Exactly this