What is unit economics?

Unit economics is a tool to measure a company’s revenue or cost per unit of its product or service. For example, a multiplex chain or an airline would calculate its revenue per seat. Similarly, a telecom operator tracks average revenue per user (ARPU). Understanding a business in this manner helps to forecast profits as the number of customers increases and to alter product specification to cut costs.

Unit economics can be used to calculate how much money a business is making per unit after deducting the expenses. For instance, the IPO-bound food-delivery firm Zomato recently reported that it is making ₹22.9 per order after subtracting the delivery cost, discounts to its customers and other variable costs.


For more about Upstox - Read more....

Comments

Popular posts from this blog

Resources and Links to learn Python for Data Science.

Electroculture Benefits & Uses. Part 2

10-week plan to learn Python for data science and data analysis, along with hands-on projects for each week.