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Uber and Lyft’s Business Model May Be Dead. Good.
The biggest startups in modern history were built on old-fashioned worker exploitation. Time for an upgrade.
Uber is less a business than a constellation of fantasies. The same goes for Lyft.
Early on, Uber and Lyft positioned themselves as “ridesharing” companies that were a key part of the buzzword-emblazoned “sharing economy.” Uber offered luxury on demand, and Lyft claimed to be a fun, environmentally friendly alternative to taxis. Both sold themselves as efficient and city-friendly and promised to help cut down on miles traveled. That was a fantasy that evaporated before the first pink Lyft mustaches fell off the bumpers. The vast majority of rides turned out to be single-passenger trips, the intent was clearly never to reduce anything, and the startups, in fact, began to contribute seriously to congestion.
The companies promised a new model of work, one that would give rise to a network of part-time drivers, “independent contractors” who were free to come and go as their schedules demanded in between pursuing their true dreams and ambitions. That too was a fantasy. Research has revealed that while a majority of drivers do log part-time shifts, most of the work is actually done by dedicated full-time drivers. As one recent study…
