I think Quibi, Humane AI Pin, and Juicero all failed because the companies made assumptions about what customers wanted without properly testing them before launch of their product.
Quibi: This company believed that people would pay a monthly subscription for short, premium videos designed for mobile phones. Before launching, they could have tested this by creating a landing page with sample videos and offering a paid early-access subscription. They should have measured how many visitors were willing to pay. If at least 5% of visitors subscribed or preordered, it would have been a sign that the idea had potential.
Humane AI Pin: The company believed that people wanted an AI-powered wearable that could perform everyday tasks without using a smartphone. They could have tested this by building a simple prototype and asking 30 people to use it for a week. They should have measured how often people used it and whether they preferred it over their phones. If at least 20 out of 30 users wanted to continue using it, the assumption would have some support.
Juicero: The company believed that people would pay around $400 for a machine that makes fresh juice using special packaged ingredients. Before manufacturing the product, they could have shown potential customers the machine and offered preorders. They should have measured how many people actually placed a paid preorder. If at least 50 out of 1,000 visitors preordered, it would suggest real demand.
My biggest takeaway from all of these is that having interesting technology does not mean people will buy or use a product. In Juicero’s case, a simple test could have shown that people could squeeze the juice packs by hand without needing an expensive machine. Testing these assumptions early could have saved all three companies a lot of money, effort and time.
