The New Millionaires: The Rise of Internet Middlemen
The lure of the Internet was to weed out middlemen. It promised buyers a direct connection to manufacturers, helping buyers skim the fat and save. Think of it as a marketplace made in arbitrage-free heaven. So how did we veer off script? How did the middlemen dominate the Top 20 shopping apps and websites?
Consider these examples. When you buy that high-end headphone from Amazon, or book a short-term rental in Boston or Barcelona, or ride-share on Uber at a fraction of a taxi rental — are any of these brands manufacturers? AirBnB does not own any apartments. Uber does not own any cars, or employ drivers as employees (they call their drivers ‘contractors’). With just the power of their app’s and websites, these marketplaces are helping connect consumers to producers. And we the consumers are willing to pay a premium.
If big brands with big Venture Capital (VC) funding can make billions by finding their niche as middlemen, is there an opportunity for an average Joe or Jane, without an Ivy-league degree or social connections, to succeed and realize their American Dream? If the answer wasn’t affirmative, this post would end in a sad dichotomy of promising dribble.
