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>The platform puts most of the financial risk on the labor side (drivers owning the cars if you're driving Uber, owning the house if you're Airbnb'ing it, etc.)
by menzoic 4y ago
>The platform puts most of the financial risk on the labor side (drivers owning the cars if you're driving Uber, owning the house if you're Airbnb'ing it, etc.)
Actually people already owned the cars and already owned their houses. How is that a financial risk? These platforms allow people to use their existing resources to make money. That's efficiency gains.
If anyone decides to acquire new vehicles or properties to use on these platforms it's because it's profitable due to the large demand driven by these companies pouring billions into customer acquisition and customer relations/support for them.
- bombcar 4y agoThat’s how it started out - but people began purchasing for use in Uber and then driver rates started dropping, but car payments didn’t.
- joe_guy 4y ago> If anyone decides to acquire new vehicles or properties to use on these platforms it's because it's profitable I don't know why you would make that assumption. See https://www.wsj.com/articles/how-uber-makes-its-drivers-pay-11565737028 https://www.wsj.com/articles/how-uber-makes-its-drivers-pay-... > Most Uber drivers seem unaware of how their job costs them when it comes to the value of their cars. Someone needs money for groceries. A bank will lend them money for a car but not groceries. They use Uber as an inefficient means to turn said loan into cash for groceries. There's no reason to assume that Uber drivers have priced out devaluation and/or have the long term in mind.