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It is a very 'low margin' thing to get into. Basically bar to entry is low. So there are lots of participants. So any company that runs something like this c
by sumtechguy 6y ago
It is a very 'low margin' thing to get into. Basically bar to entry is low. So there are lots of participants. So any company that runs something like this can skim most of the profit and offer whatever is left over. I know a few people who do this sort of thing. Usually for a very short time then they give up realizing there is no real money in it. It is kind of like MLM you are shown how much you might make. But that rarely happens. One guy I know showed me how he breaks even basically on it. He said "I do not do this for the money I have that from my real job I do it to meet people as I find that fun". What is kind of amusing is the 'real' taxi industry that they disrupted have their own set of scams they play on people. Usually with leasing/rental/payback agreements.
People sometimes forget that labor is a market too even if you price it at free. One that has price points and different quality at those points. They also quietly forget that changing the rules in that market affects dozens of other markets. Take for example what Cali did. They basically ran Uber out of the market. That means there is now a pool of labor that someone else can use. That will lower wages in that spectrum of talent. That is the supply and demand working, or the 'invisible hand'. Take for example the mona lisa. There is one of them so its 'price' is basically huge. But lets say he had spent years cranking out thousands of copies. What would it be worth? Not nearly as much. Scarcity drives prices up. Plenty drives prices down. The same is almost always true in almost all markets. What creates 'scarcity' and 'plenty' can be manipulated too, and is.