3 ms·

Unlike Webvan, they rely on contract workers. No need to operate a large fleet of delivery vehicles/drivers, or sink money in warehouse operations. Internet pen

by mashgin 12y ago

Unlike Webvan, they rely on contract workers. No need to operate a large fleet of delivery vehicles/drivers, or sink money in warehouse operations. Internet penetration has doubled (~45% then vs almost 90% of US population now). Of course, smartphones everywhere are a big enabler as well.

baddox 12y ago
Funny enough, I have seen several people say that this makes Instacart worse than Webvan, because "at least Webvan had assets." I'm pretty sure that's a nonsensical argument, since those assets were just from them dumping millions of their investment dollars into infrastructure.
7Figures2Commas 12y ago
> Unlike Webvan, they rely on contract workers. No need to operate a large fleet of delivery vehicles/drivers... They currently rely on contract workers but there is a legitimate question as to whether many of the on-demand companies have misclassified their workers[1]. Uber and Handy have already been sued over classification, and class action attorneys have publicly named other on-demand startups that they're investigating for similar actions. As one attorney has observed, the startups that have made 1099 contractors the foundation of their businesses "are potentially exposed to a bet-your-company liability if they have not structured, documented, and implemented their freelance relationships in a manner that enhances their compliance with federal and state independent contractor laws"[2]. [1] http://nymag.com/daily/intelligencer/2014/09/silicon-valleys-contract-worker-problem.html http://nymag.com/daily/intelligencer/2014/09/silicon-valleys... [2] http://independentcontractorcompliance.com/2014/12/02/november-2014-independent-contractor-compliance-and-misclassification-update/ http://independentcontractorcompliance.com/2014/12/02/novemb...

3 ms·

Unlike Webvan, they rely on contract workers. No need to operate a large fleet of delivery vehicles/drivers, or sink money in warehouse operations. Internet pen

by mashgin 12y ago

baddox 12y ago
Funny enough, I have seen several people say that this makes Instacart worse than Webvan, because "at least Webvan had assets." I'm pretty sure that's a nonsensical argument, since those assets were just from them dumping millions of their investment dollars into infrastructure.
7Figures2Commas 12y ago
> Unlike Webvan, they rely on contract workers. No need to operate a large fleet of delivery vehicles/drivers... They currently rely on contract workers but there is a legitimate question as to whether many of the on-demand companies have misclassified their workers[1]. Uber and Handy have already been sued over classification, and class action attorneys have publicly named other on-demand startups that they're investigating for similar actions. As one attorney has observed, the startups that have made 1099 contractors the foundation of their businesses "are potentially exposed to a bet-your-company liability if they have not structured, documented, and implemented their freelance relationships in a manner that enhances their compliance with federal and state independent contractor laws"[2]. [1] http://nymag.com/daily/intelligencer/2014/09/silicon-valleys-contract-worker-problem.html http://nymag.com/daily/intelligencer/2014/09/silicon-valleys... [2] http://independentcontractorcompliance.com/2014/12/02/november-2014-independent-contractor-compliance-and-misclassification-update/ http://independentcontractorcompliance.com/2014/12/02/novemb...