It seems several of them are now failing. Like you say, it's basically a miscalculation of unit economics over time, but being able to reduce staffing costs by

It seems several of them are now failing. Like you say, it's basically a miscalculation of unit economics over time, but being able to reduce staffing costs by 20% or more certainly gave them more runway. Hard to say if the others have fixed their economics (eg, Instacart) or are simply better at fundraising. Here's a list from 2015 [1] showing some of these companies that are trying to switch to W-2. Munchery Stiffs Early Backers and Cuts Staff in a Bid for Survival [2] Luxe Valet shuts the door on two more markets [3] [1] http://www.web-strategist.com/blog/2015/07/30/collaborative-startups-shift-from-contractor-to-employee-relationships/ http://www.web-strategist.com/blog/2015/07/30/collaborative-... [2] https://www.bloomberg.com/news/articles/2017-03-29/munchery-stiffs-early-backers-and-cuts-staff-in-a-bid-for-survival https://www.bloomberg.com/news/articles/2017-03-29/munchery-... [3] https://www.axios.com/luxe-valet-2219230863.html https://www.axios.com/luxe-valet-2219230863.html