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Uber’s model primarily converts mechanical asset depreciation into discount taxi fares. Much like early courier companies, it also relies on the desperation of

Uber’s model primarily converts mechanical asset depreciation into discount taxi fares. Much like early courier companies, it also relies on the desperation of indebted owner-operators, and an inability to calculate operational losses. “Coding — Build product with bounties” Translation: contractors with zero long-term obligations, economic incentives to take the shortest/riskiest path, and 3rd parties privy to trade secrets. Not the dumbest idea I have ever heard from MBAs, but maybe a close second. ;)

rsrsrs86 4y ago
Plus there is a strong argument from Coase. Firms, he says, exist because negotiating jobs at this granularity would be to costly.
steve76 4y ago
synicalx 4y ago
This model seems to work well enough to have spawned many clones - Upwork, Fiverr, Freelancer etc.
- Joel_Mckay 4y ago
  Good point, market fragmentation is also an issue. I always underestimate the number of people that miscalculate opportunity cost, and overestimate the utility of outsourced 3rd world labor. As a side note, one should be aware of jurisdictional tax laws which can trigger based on the number of transactions in a given state. Accordingly, even international remote contractors that fail to file in each state with the IRS may incur a $10k fine. A common mistake for small Amazon/ebay businesses dealing with US customers since 2019. Good policy is to talk with AMCHAM __before__ you make a silly mistake. ;) For this simple reason, not one of those staffing-agent companies will be in my portfolio anytime soon. Dumb people test the law, and always end up losing. You're welcome friend... =) P.S. I hear these remote job options are not terrible, and full disclosure... I am still bullish on some of their stocks too: GoTranscript https://gotranscript.com/ https://gotranscript.com/ Automattic https://automattic.com/work-with-us/ https://automattic.com/work-with-us/ liveops https://join.liveops.com/ https://join.liveops.com/ Apple https://www.apple.com/careers/us/ https://www.apple.com/careers/us/ Sitel https://www.sitel.com/careers/ https://www.sitel.com/careers/ Asurion https://careers.asurion.com/ https://careers.asurion.com/ Concentrix ( Convergys ) https://careers.concentrix.com/ https://careers.concentrix.com/ UHAUL https://jobs.uhaul.com/ https://jobs.uhaul.com/

rsrsrs86 4y ago

Plus there is a strong argument from Coase. Firms, he says, exist because negotiating jobs at this granularity would be to costly.

steve76 4y ago

synicalx 4y ago

This model seems to work well enough to have spawned many clones - Upwork, Fiverr, Freelancer etc.

Joel_Mckay 4y ago
Good point, market fragmentation is also an issue. I always underestimate the number of people that miscalculate opportunity cost, and overestimate the utility of outsourced 3rd world labor. As a side note, one should be aware of jurisdictional tax laws which can trigger based on the number of transactions in a given state. Accordingly, even international remote contractors that fail to file in each state with the IRS may incur a $10k fine. A common mistake for small Amazon/ebay businesses dealing with US customers since 2019. Good policy is to talk with AMCHAM __before__ you make a silly mistake. ;) For this simple reason, not one of those staffing-agent companies will be in my portfolio anytime soon. Dumb people test the law, and always end up losing. You're welcome friend... =) P.S. I hear these remote job options are not terrible, and full disclosure... I am still bullish on some of their stocks too: GoTranscript https://gotranscript.com/ https://gotranscript.com/ Automattic https://automattic.com/work-with-us/ https://automattic.com/work-with-us/ liveops https://join.liveops.com/ https://join.liveops.com/ Apple https://www.apple.com/careers/us/ https://www.apple.com/careers/us/ Sitel https://www.sitel.com/careers/ https://www.sitel.com/careers/ Asurion https://careers.asurion.com/ https://careers.asurion.com/ Concentrix ( Convergys ) https://careers.concentrix.com/ https://careers.concentrix.com/ UHAUL https://jobs.uhaul.com/ https://jobs.uhaul.com/