Today’s Unemployment/Underemployment Is Not Driving the Growth of “Uber for X” Companies


I ran across an interesting article on Bloomberg where the columnist argues that if it wasn’t for today’s “unusual” unemployment/underemployment (underemployment is where people are over-qualified for their current jobs), startups like Uber, Lyft, Instacart, Postmates, etc. would NOT have the large network of drivers that allow them to deliver quality on-demand services, thus driving their growth and valuations.

It’s absolutely insane to me that anyone can make this argument with any type of credibility. If the logic of her argument were to hold true in other recessions, she is saying that if these contract jobs were to have popped up then, these startups wouldn’t have survived. It’s ludicrous to think that if Uber would have existed in the 60’s, 70’s, or 80’s, that no one would have signed up to work for the company. I’m a firm believer that the American workforce will gladly do these “side-jobs”, especially when there is little to no qualifications barring them from making the extra side-cash. What makes these types of jobs extremely attractive for the long-term, and this isn’t just a fad as she concludes, is that workers get to utilize an asset (their car) that would otherwise be idle and costing them money. Irregardless of whether this is a historic time for underemployment or not, Americans will always be looking to make more money to pay for that extra something, fill a void of unemployment, or make ends meet more reasonably.

Coming from a tech startup, I may have my own biases, but ignorance shouldn’t be allowed in mainstream media. When non-tech people claim that an idea/company won’t work, it makes us tech people work that much harder, and more times than not, that same naysayer is singing that company’s praises years later.

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