Mike: The Uber IPO should put to rest FOREVER the idea of the “gig economy” as anything other than a monopolized marketplace
If I were to phrase it in TechSpeak: The “unit economics” can only be achieved by implanting new classical economic ideas of supply and demand but while we can can achieve a network effect with consumers this tends to lead to increased churn of drivers”
In other words we can offer low prices to drive traditional companies out of business by screwing drivers. Only Problem is we have to spend a ton on marketing to replace those drivers… thus we are losing money. so we thought we would let some consumers into the game.
“I want people to know how powerless you feel when your income comes from a faceless app and when you open it up one morning, things are just different and you’re earning less money and there’s no boss you can talk to, you weren’t told about it, you just see your income is lower today and you just have to deal with it,” said Peter.