Furthermore, people wring their hands over the gig economy mostly in some specific contexts like Uber drivers. They’re shedding
far fewer tears for their plumber who isn’t available for another month.
Re:What people actually do at WeWork
by notthemessiah on Sunday February 04, 2018 @12:04PM
(#16303540)
It should be noted that Uber isn't cheaper to operate than a cab, they are just operating at a loss to destroy the taxi industry. As soon as it's done with that, prices should rise.
Re:What people actually do at WeWork
by mixmastamyk on Sunday February 04, 2018 @01:04PM
(#16303887)
Yes, though they are avoiding permit fees as well.
Re:What people actually do at WeWork
by notthemessiah on Sunday February 04, 2018 @02:11PM
(#16304259)
Permit fees don't come out of nowhere, they come out of the transaction costs of finding reputable drivers, a cost that Uber is rediscovering.
If you look at it purely from the perspective of economic theory, stable long-term employment is weirder than everybody being an individual contractor. Ronald Coase asks the question "Why do firms even exist in the first place?" [1] and comes to the conclusion that many transaction costs come along with marketplaces, and firms may be well-suited for dealing with those transaction costs internally. In this light, It may be observed that the gig economy firms "solve" transaction cost sub-problems, eradicating the bulwark of the firm and exposing the would-be workers to the competitive forces of the marketplace.
[1] https://en.wikipedia.org/wiki/The_Nature_of_the_Firm