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"An unkind summary, then, of the past half decade of the consumer internet: Venture capitalists have subsidized the creation of platforms for low-paying work th
by zeroname 8y ago
"An unkind summary, then, of the past half decade of the consumer internet: Venture capitalists have subsidized the creation of platforms for low-paying work that deliver on-demand servant services to rich people, while subjecting all parties to increased surveillance."
The whole "rich vs poor divide" angle is nonsense. Like the article admits, all of these services were available before, but now they have the form of an app. The money goes to develop and advertise the whole show (creating jobs), but also to subsidize the labor. In effect, these services are more affordable than before. Uber is cheaper than a Taxi. Having your groceries delivered can be cheaper than doing it yourself, even if you earn small.
All that venture capital comes from the rich and goes into the pockets of those who aren't rich. It's dumb money, the same kind that made pets.com (a ludicrous business) go to a 100 million dollar market cap. As soon as that capital dries up, these shops will close down, or raise prices. They will never make their money back, because nobody will be able to maintain a monopoly on a service that almost anyone can perform. That's also why the labor itself will stay cheap, no matter who the middleman is. It's not like these jobs were highly lucrative before all these capitalists walked in.
- peterwwillis 8y agoUber wasn't available before Uber. Taxis were available, but those are very different things. It really is a job platform designed to take advantage of people who need multiple jobs, and surprise surprise, there's a slew of 'em here. It simply wouldn't work in a country that did not have such huge wealth disparity.
- jessaustin 8y agoNeither would fast food. Is Uber worse than Taco Bell? You can ignore nutritional atrocities if you like...
- zeroname 8y agoTaxis aren't very different things at all. That's why in many countries, Uber has been banned. They're regarded as taxis circumventing taxi regulations. > It really is a job platform designed to take advantage of people who need multiple jobs, and surprise surprise, there's a slew of 'em here. Any job offer is taking advantage of the fact that people aren't magical self-sufficient entities. There's nothing wrong with offering a job, nobody is forcing anyone to take it. > It simply wouldn't work in a country that did not have such huge wealth disparity. Wealth disparity has nothing to do with it. Uber prices are set by supply and demand. In some countries, Uber may need to pay more to attract drivers - and raise prices as a result.
- peterwwillis 8y agoSee, this is the problem, nobody understands what Uber is. It's a platform for turning random unskilled people with cars into a cheap, temporary, on-demand labor force. You don't have to invest in a vehicle fleet, you don't have to train anyone, you don't have to pay for medallions. You just grab a random yo-yo with a vehicle and a clean driving record and they start making you cash. You can't do that with a Taxi. For a Taxi there's a huge capital, personnel, and operational investment. To become a NYC Taxi driver, you need: An application, an $84 licensing fee, a $75 fingerprinting fee, criminal background check, $15 copy of state driving record, no outstanding traffic or parking tickets or child support payments (??), a medical examination [you pay for], a $26 drug test, a six-hour $50 defensive driving course, attend taxi school (24 to 80 hours, $125 to $325), $25 English written and spoken proficiency test (optional $20 prep test), and a $60 wheelchair accessible vehicle training course. For the license you may have to memorize lots of information about your municipality. Only half of license test takers pass. You can join a company and earn 2/3 your fare per day minus fuel costs, or rent a cab for ~$100/day plus fuel. If passengers pay by card you may pay up to 10% in fees. You may have to carry general liability even if your cab company insures you. Or you can become an Uber driver if you have a new car, insurance, and a clean record. To make money with a Taxi, you need to drive around 10-12 hours 5 days a week, ideally at peak hours. The base rate is around $10 an hour, but if you get good you can make double that. Tips can make up to 40% of income. Based on this, you can make minimum wage or higher. With Uber, you drive when you want. But you can't drive an unlimited amount. So if you're doing this to support a family, you have to drive both Uber and Lyft and maybe work another job or two on the side. It's expected that this won't be your only job. You have to already be investing tens of thousands of dollars in a vehicle, and also already have other income. This kind of driver never existed before. Someone who is partially wealthy, but needs more cash, but doesn't have time to go job-hunting and find part time work. Someone who never would have driven for a Taxi company, but will take their own car and time to make odd trips around the city for hours at a time. A non-Taxi driver who will do Taxi-like things. So what's new is the Uber driver herself. She only exists now because she was formerly lower-middle class, and now she needs 3 jobs to support herself. It's the platform designed for the widening wage gap. And it is horrifying that that's where our economy is now: a slow, steady erosion of economic security for more and more of the country.