Analysts Point to Cash Burn, Not Just Marriott

Listen to the full episode on Patreon. Join today at the Murdoch's Mates level and get FOUR bonus epiosdes every month plus the Corporate Gossip Book Club and group chat!

On Monday morning thousands of travelers were locked out of their Sonder hotel rooms and told: Sorry! Our business isn't businessing anymore :) Executives at both Marriott and Sonder turned their phones on Do Not Disturb as frazzled front line employees tried to manage fuming customers.

At first glance, this just seems like a mismanaged PR crisis, but there's SO much more to the story: A bay area unicorn led by a Forbes 30 under 30 wunderkind, co-opted by VC maniacs speeding down the the 2021 SPAC super highway, bailing right before the crash and leaving unwitting investors holding the bag. INTO THE CORPORATE DUMPSTER!!!

Links:

Hospitality Startup Sonder Raises $170 Million At A $1.3 Billion Valuation During Covid-19 Travel Collapse

Gores SPAC's High Redemptions Signal Worsening Sector Sentiment

Sonder faces class action investigation after delaying financial results due to errors in past statements

Sonder Seeks Room in Post-Covid-19 Lodging

San Francisco property-tech company, once worth $1.9B, suddenly goes belly-up

Dear Sonder Guest, Your Hotel Is Closed