He Thought He Could Outfox the Gig Economy

[ergophobe]

He Was Wrong

https://www.wired.com/story/gig-economy-uber-lyft-doordash-jeffrey-fang

This is really long and I skimmed a fair bit in the middle, but I found it an amazing read... salvation thanks to Lyft, followed by a harrowing descent into the underbelly of the gig economy, ending with his children being kidnapped (no spoiler - that's the article opening)

BTW - I hate the phrase "gig economy" for Uber, Lyft, Instacart... is there a better one? The piecemeal economy? The Darwin economy?

[Drastic]

Side-hustle economy, imo.

[ergophobe]

But is it a side hustle if it's your only job?

[littleman]

Modern serfdom?

[DrCool]

Good read. I could definitely see how that could all become addicting. If I was doing it I would probably play the "just one more..." game for hours.

[ergophobe]

I could definitely see how that could all become addicting.

The whole story is amazing, but from an insight/intellectual point of view, that was the part that really stood out to my wife and I too. It hadn't occurred to me the degree to which it was gamified.

>>Modern serfdom?

How about "subsistence contracting"? I just keep wondering, as a society, what the end point is of a Darwinian race to the bottom.

[Drastic]

https://www.vice.com/en/article/7kvej4/uber-and-lyft-cant-find-drivers-because-gig-work-sucks

[ergophobe]

And that article led me to this one
https://www.vice.com/en/article/93yd83/uber-ceo-delivers-uber-eats-for-a-few-hours-says-everything-is-fine

None of those articles incline me to use those service, but since I rarely go anywhere they are offered, it's sort of a moot point.

[rcjordan]

Uber drivers have been 'liquidating' their vehicles --wearing them out converting miles to cash.  IMO, that was never going to work over the long term but with new vehicles costing north of $50k, I doubt they're even covering the monthly payment now after taxes and insurance.

[ergophobe]

>>IMO... over the long term

You don't say. Oh wait, yes you do ;-)

http://th3core.com/talk/economics-investing/the-millennial-lifestyle-is-about-to-get-more-expensive/

The problem with angel investors and VCs and even plain old shareholders is that over the long term they start getting tired of setting piles of cash on fire every quarter.

Without people willing to keep pulling up to the Uber furnace with truckloads of cash, Uber had to get more expensive even as it squeezes driver pay. The best part is, before it crashes in a screaming money-fueled fireball, it also manages to "disrupt" the local taxi cab infrastructure too.

FCF = free cash flow

The Emperor Has No Clothes – Uber's Business Model Is Broken
https://www.forbes.com/sites/greatspeculations/2020/09/09/the-emperor-has-no-clothes--ubers-business-model-is-broken/?sh=6b6928ad706a

Over the past two years, the firm has burned a cumulative $23.3 billion (42% of market cap) in FCF. What's worse, the firm's annual FCF burn is accelerating. Uber burned $9.7 billion in FCF in 2018 and $13.7 billion in 2019.

Or, as the guy said years ago: We lose money on every ride, but we'll make it up in volume.