The "sharing" economy--is it here to stay?

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July 26th, 2016 at 3:35:18 PM permalink
Evenbob
Member since: Oct 24, 2012
Threads: 146
Posts: 25010
Didn't take long.

"Here is the thing about Uber and Lyft (and much of the “sharing economy”). They don’t pay the cost of their capital.
The wages they pay to their drivers are less than the depreciation of the cars and the expense of keeping the drivers fed, housed, and healthy. They pay less than minimum wage in most markets, and, in most markets, that is not enough to pay the costs of a car plus a human.
These business models are ways of draining capital from the economy and putting them into the hands of a few investors and executives. They prey on desperate people who need money now, even if the money is insufficient to pay their total costs. Drivers are draining their own reserves to get cash now, but, hey, they gotta eat and pay the bills."

"Company execs and investors get rich, consumers get cheaper rides and drivers get money they need. But this isn’t win, win, win. It’s a long con. And not a very long one, either."

Which is what I said from the gitgo. “Drive your car into the ground, make less than minimum wage.”

http://www.ianwelsh.net/the-market-fairy-will-not-solve-the-problems-of-uber-and-lyft/
If you take a risk, you may lose. If you never take a risk, you will always lose.
July 26th, 2016 at 3:48:21 PM permalink
AZDuffman
Member since: Oct 24, 2012
Threads: 135
Posts: 18136
Quote: Evenbob
Didn't take long.

"Here is the thing about Uber and Lyft (and much of the “sharing economy”). They don’t pay the cost of their capital.
The wages they pay to their drivers are less than the depreciation of the cars and the expense of keeping the drivers fed, housed, and healthy. They pay less than minimum wage in most markets, and, in most markets, that is not enough to pay the costs of a car plus a human.
These business models are ways of draining capital from the economy and putting them into the hands of a few investors and executives. They prey on desperate people who need money now, even if the money is insufficient to pay their total costs. Drivers are draining their own reserves to get cash now, but, hey, they gotta eat and pay the bills."

"Company execs and investors get rich, consumers get cheaper rides and drivers get money they need. But this isn’t win, win, win. It’s a long con. And not a very long one, either."

Which is what I said from the gitgo. “Drive your car into the ground, make less than minimum wage.”


Then drivers will drop out and rates will rise. The model of one or two licensed cab companies is dead.
The President is a fink.
July 26th, 2016 at 4:13:31 PM permalink
Evenbob
Member since: Oct 24, 2012
Threads: 146
Posts: 25010
Quote: AZDuffman
Then drivers will drop out and rates will rise. The model of one or two licensed cab companies is dead.


Read Nareed's post, it's alive and well.
40 min waits are the norm for Uber
in many places because the driver
pool has leveled off to where the
cab co's are.

I'll explain it again. I didn't have 75
cars and drivers because there wasn't
enough business for it. I had 30
because it was just right for a driver
to earn a living. Uber had too many
drivers, enough of them starved,
so now there are just enough that people
have to wait just like a real cab co.
If you take a risk, you may lose. If you never take a risk, you will always lose.
July 26th, 2016 at 8:37:17 PM permalink
Fleastiff
Member since: Oct 27, 2012
Threads: 62
Posts: 7831
That took place when you managed rides, drivers, cabs, locations by map, memory, telephones and radios.

Uber and Lyft use algorithms, predictive analytics, gps, instantaneous memory and SMS/emails/voice to fine tune the cars/drivers situation .... or they claim to.
November 21st, 2016 at 2:35:42 PM permalink
Fleastiff
Member since: Oct 27, 2012
Threads: 62
Posts: 7831
AIRBNB adopts major policy of continuing to allow property owners to rent out their property on short term rentals as if they were a hotel or vacation resort, irrespective of local regulations or home owners agreements trying to prevent short term guests. Airbnb to extend into ground transport and guest payments, including tours, taxi-alternatives and hotel occupancy taxes.
November 21st, 2016 at 4:38:50 PM permalink
DRich
Member since: Oct 24, 2012
Threads: 51
Posts: 4944
Quote: Fleastiff
AIRBNB adopts major policy of continuing to allow property owners to rent out their property on short term rentals as if they were a hotel or vacation resort, irrespective of local regulations or home owners agreements trying to prevent short term guests.


I thought AirBNB agreed to not do business if the local jurisdiction filed paperwork with AirBNB notifying them that the laws prevent it.
At my age a Life In Prison sentence is not much of a detrrent.
November 21st, 2016 at 6:50:29 PM permalink
Fleastiff
Member since: Oct 27, 2012
Threads: 62
Posts: 7831
Airbnb has decided to seek agreements with its top 700 markets to collect hotel taxes if allowed to continue short term rental operations. I think airbnb intends for the time being to abide by government regulations but airbnb will not be bowing to local home owner associations who are miffed but have no authority to impose fines.
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