This Week in Startups

Cursor’s $300M ARR, Uber’s FTC Battle, and Office Hours with GoShare | E2116

Apr 23, 2025

The FTC's lawsuit against Uber raises questions about consumer protection amid subscription management. Cursor's astonishing growth as an AI startup showcases the potential of innovative solutions. Dark patterns in UX design are scrutinized, highlighting the need for transparency. Insights from GoShare's CEO emphasize focus and customer obsession for navigating market turbulence. The discussion also touches on compliance challenges in the gig economy and strategies for startups to adapt and thrive.

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Quick takeaways

The FTC's lawsuit against Uber highlights the growing scrutiny on subscription models and the need for transparent consumer practices.

Cursor's rapid growth to $300M ARR emphasizes the increasing demand for AI-driven tools in software development and potential market opportunities.

The importance of compliance certifications for startups underscores the role of consumer trust in securing major clients and facilitating growth.

Deep dives

FTC Lawsuit Against Uber

The FTC is suing Uber, alleging that the company charged consumers for its Uber One subscription service without their explicit consent. Additionally, the claims include failures to deliver promised savings and difficulties encountered by users attempting to cancel the service. The speaker supports the FTC's proactive approach in protecting consumer interests, highlighting frustrations with subscription models where cancellation is made unnecessarily complicated. This lawsuit may reflect a growing trend where regulatory bodies scrutinize companies employing potentially deceptive practices.

Intro

4min

Adventures in New Orleans and Economic Insights

8min

Economic Policies and Startup Growth

7min

Financial Projections and Business Growth with Payroll Solutions

3min

Market Dynamics and Consumer Rights

7min

Navigating Compliance and Product Success in Startups

4min

Navigating Growth and Challenges in Startups

24min

Expanding Business Horizons for Delivery Services

5min

Today’s show: Jason, Alex and Lon unpack the FTC’s lawsuit against Uber and what it could mean for subscription UX, break down how AI startup Cursor is growing faster than almost any SaaS company in history, and discuss how dark patterns, consumer trust, and regulatory scrutiny are reshaping product design. They also touch on the future of big tech breakups, share insights from founder Office Hours with GoShare CEO Shaun Savage, highlighting the power of focus, capital, and customer obsession for startups navigating turbulent markets.

Timestamps:

(0:00) Episode Tease(1:21) Jason talks about personal interests, frugality, and TWIST live tour(7:29) Nick Huber's tweet on tariffs and business impact(9:58) NetSuite - Download the CFO's Guide to AI and Machine Learning for free at https://www.netsuite.com/twist(11:22) Market uncertainty and paused deals(13:57) Trump's market feedback and tariffs(16:29) Cursor's rapid revenue growth(19:44) Gusto - Get three months free when you run your first payroll at http://gusto.com/twist(21:16) Valuation discussion continuation and FTC sues Uber(29:58) Vanta - Get $1000 off your SOC 2 at https://www.vanta.com/twist(31:26) FTC dark patterns and consumer protection(33:23) Founder Friday bracket competition: LifeStack vs MedSimple(43:50) Introduction to GoShare and founder Shaun Savage(45:57) Regulatory challenges in the gig economy and supply chain resilience(57:37) Diversification strategies for GoShare's delivery professionals(1:00:23) Benefits of office hours and brainstorming with portfolio companies(1:01:26) Founder University and Launch Accelerator updates

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Links from episode:

GoShare: https://goshare.co/

Founder University: https://www.founder.university/

Follow Shaun:

X: https://x.com/ShaunSavage19

LinkedIn: https://www.linkedin.com/in/shaunsavage/

Follow Lon:

X: https://x.com/lons

Follow Alex: