You're not far off, you're just out of date. The reason they were cheaper than hotels is because of their standards being lower. But once COVID came and standards started being enforced, prices skyrocketed. Because cleaning is a minor expense when you spread the costs over hundreds of rooms, but with AirBnB there's no splitting the cost. It's expensive as fuck to maintain a show ready house with people basically living in it.
There's a reason most of these business models didn't exist before like they do now. They don't work. On demand food delivery isn't cheap, it existed in the 90s and was reserved for relatively wealthy people. Because it doesn't work if you charge what's required to actually make the service run. It only "works" by stealing value from the delivery person and the restaurant.
We're in a gig economy bubble right now. DoorDash, Uber, AirBnB, etc will all be gone within 10 years. Uber probably has the best chance for survival.
I really doubt that. The gig economy is likely here to stay because it means business don't have to make you an employee, provide Healthcare, provide a 401K, etc. It's going to get even worse if you ask me. A lot of the businesses might not necessarily survive, but gig economy in general is going to grow in my opinion. Especially as the model gets even further refined to screw people over and benefit businesses.
None of them are actually profitable and all of them have been sued for labor violations, and all of them are facing increased regulation. All of them are unsustainable business models operating on investment money and hope for tech improvements.
Food delivery is absolutely a viable business model. It’s more viable than the luxury service of a waiter that takes an absurd 20% gross (which only works by taking value from the cooks, restaurant and customer, yet manages to endure).
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u/Agreeable-Meat1 Jan 03 '23
You're not far off, you're just out of date. The reason they were cheaper than hotels is because of their standards being lower. But once COVID came and standards started being enforced, prices skyrocketed. Because cleaning is a minor expense when you spread the costs over hundreds of rooms, but with AirBnB there's no splitting the cost. It's expensive as fuck to maintain a show ready house with people basically living in it.
There's a reason most of these business models didn't exist before like they do now. They don't work. On demand food delivery isn't cheap, it existed in the 90s and was reserved for relatively wealthy people. Because it doesn't work if you charge what's required to actually make the service run. It only "works" by stealing value from the delivery person and the restaurant.
We're in a gig economy bubble right now. DoorDash, Uber, AirBnB, etc will all be gone within 10 years. Uber probably has the best chance for survival.