Why Companies like Lyft, Uber, Postmates, Instacart etc Will Never Be Profitable.
Seyi Fabode
78148

You stated:

“The constraint is not faster horses or sleeker technology. The constraint is that there is only so much money to be shared between all parties when you insert your app (and the back-office that supports that app) between a consumer and the product/service they want to consume. The constraint is that the broker model, even with new technology, is not value additive. At some point someone has to be purged from the system, and it won’t be the asset owner, producing or delivering the service, or the consumer, who pays for the service.”

I’m not so sure this assessment is correct. A marketplace lessens the time cost of buyers and sellers meeting to carry out a transaction; because of this, transactions that would otherwise not happen can happen. Doesn’t this add value? If a driver has his own car, but can’t offer rides to willing riders or to do delivery services because the app ecosystem isn’t there to coordinate the transaction, that value can’t be actualized. LUPIs, in this sense, offer value in the way that marketplaces offer value—by bringing willing buyers and sellers together.

Like what you read? Give Berkana a round of applause.

From a quick cheer to a standing ovation, clap to show how much you enjoyed this story.