The End Of The Gig Economy?

Submitted by gjohnsit on Mon, 05/04/2020 - 2:43pm

I'm no fan of the Gig Economy. I don't believe it created any jobs, but instead just undercut established, regulated industries that payed living wages.

Airbnb wasn't doing well before Covid-19. It lost $674 million just last year. Then everything shut down.

According to AirDNA, an online rental analytics firm, new bookings on Airbnb are down 85 per cent; cancellation rates are close to 90 per cent...
Hosts are calling it the Airbnb apocalypse.

Airbnb’s global inventory of seven million listings is bigger than the top-ten hotel chains combined. The comparison to hotels is apt for roughly 2/3rd of Airbnb listings.

properties that are more akin to hotel rooms than sharing economy holiday rentals. Many of those listings are also rent-to-rent properties, run by companies or individuals who take out loans to secure a number of properties on a long term basis knowing that they can get substantially higher rates by subletting them through Airbnb, Booking.com and other online platforms.

Some Airbnb hosts had to slash their prices by more than 80%.
Suddenly not having renters to pay the mortgage means the end of a business model that's caused a global housing affordability crisis.

“People who were leasing apartments to put them on Airbnb in major metropolitan markets – those businesses are decimated and most of those companies will be out of business if not now then in the next few months,” says Shatford.

Uber has always been a blackhole for investor cash. It lost $1.8 billion in 2018 and a breathtaking $8.5 billion in 2019.
And then came the virus.

Uber will also “write down” some of its poorly performing minority investments with a one-time “impairment charge” — an accounting move that will see the company‘s Q1 losses increase by $1.9 to $2.2 billion...
In March, CEO Dara Khosrowshahi said that bookings were down by as much as 70% in cities heavily impacted by the coronavirus, like Seattle. Anonymized spending data further suggested that number could be in excess of 94% in other states.

In response Uber’s chief technology officer is stepping down, while doing layoffs of up to 20 percent of the company’s employees (same with Lyft).
The fact is that Uber is doomed.

The problem with the ridesharing business model is that the more money the business makes, the more the business loses. This is reflected in the past three years of financials between 2017-2019. Essentially, Uber and Lyft used private funding to subsidize rideshare demand in the year leading up to their public filings.
And this business model hasn’t really changed.

While Uben may survive for awhile, WeWork is headed for bankruptcy, sooner rather than later.

In September, WeWork was forced to pull the plug on its ill-fated initial public offering. The money-losing co-working company expected a warm reception, yet investors balked at both its corporate structure, which gave founder and CEO Adam Nuemann near total control, and its eye-watering proposed valuation, which topped out at $47 billion in its last private funding round. In an effort to save the IPO, WeWork cut its valuation to $10 billion and ousted Neumann, but the damage was already done.

The immense damage is still being added up.
WeWork's largest shareholder is SoftBank Group Corp. and its Vision Fund. It repeatedly bailed out WeWork, and that was a mistake.

The Japanese company on Thursday widened its forecast for a net loss in the year ended in March from 750 billion to 900 billion yen ($7 billion to $8.4 billion). The firm said it expects to lose 700 billion yen ($6.6 billion) on a portion of its investment in the troubled coworking provider WeWork that it holds outside of its $100 billion Vision Fund.
Earlier this month, SoftBank said it would post a record annual operating loss of 1.35 trillion yen ($12.6 billion) — the worst in at least 20 years, according to the data provider Refinitiv — as bets in the Vision Fund turned sour. The company said Thursday that forecast remains unchanged.

Then the forecast changed.

$24 billion here. $24 billion there. Pretty soon you are talking about real money.

Tags:

Gig Economy

sharing economy

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Comments

Submitted by Pricknick on Mon, 05/04/2020 - 4:05pm

I have (had)

a client (who has several airbnb unit's in Ann Arbor) and wanted some work performed on some of them while they were empty.
I told them all work would require full payment of all materials and daily payment of labor. He was very upset and said he'd never do business with me again. He called back a week later and agreed to my prior terms. I informed him that all labor and materials would be paid in full before starting. Again he refused. Again he returned. I had to inform him that I don't need his business. Little did he know that I was watching his properties on zillow and they are all for sale.
Risky business.

—

Regardless of the path in life I chose, I realize it's always forward, never straight.

Submitted by longtalldrink on Mon, 05/04/2020 - 3:56pm

Never fully grasped

how very parasitic everything is. This has been a major eye-opening experience. I just never really thought about it...everything was just the way things were. Goes to show just how important and unimportant things are.

—

Well done is better than well said-Ben Franklin

Submitted by gjohnsit on Mon, 05/04/2020 - 4:45pm

Was just on Zerohedge

@longtalldrink
and was reading a post that's openly in favor of debt slavery, and opposed to one of the founders of western democracy and civilization.

Submitted by Pricknick on Mon, 05/04/2020 - 5:22pm

Maybe I read it wrong

@gjohnsit
but the original article seems to be a warning of the coming greater debt slavery (which is already in full swing) and how it should be avoided. I do agree that the last sentence sounds like favorism but overall I see WARNING!
At the very end of the article is this:

Never let a good crisis go to waste is the mantra of the elites.
In tumultuous times, their tactics have extra potency. They reach for more power.
But this is also when the elite are most vulnerable.
By studying their tactics, you will be more prepared to guard against, and counter-attack the enemy.
The current crisis is being used to exploit the masses. But it also presents tremendous opportunity to take the power back, and reshape this world.

Society is entering a new period of transition, a struggle that will reveal the elites of the next generation.
Now is the time to seize your power if you intend to be among their ranks.

https://www.thedailybell.com/all-articles/news-analysis/what-happens-whe...

—

Regardless of the path in life I chose, I realize it's always forward, never straight.

Submitted by vtcc73 on Mon, 05/04/2020 - 4:23pm

This is how the upper middle class will feel this crash.

There was so much money out there chasing smaller and smaller returns. Risk was not obvious and greed blinded so many. Yeah, this thing is going to reach way up under the skirts of the well off.

Like my wife likes to say: It's all fun and games until someone gets their eye put out. It's going to be interesting if this changes any minds or can lead to a system reboot.

—

"Ah, but I was so much older then, I'm younger than that now..."

Submitted by Pricknick on Mon, 05/04/2020 - 8:25pm

Officially

@vtcc73
my mind is changed.
So much is happening so fast. Not just this current issue but since decades ago. It's insidious on how it creeps up on so many while they're still numb from the last unwanted financial intercourse just ten years before.

—

Regardless of the path in life I chose, I realize it's always forward, never straight.

Submitted by vtcc73 on Mon, 05/04/2020 - 10:43pm

Changed in what respect?

@Pricknick I'm beginning to think that it's possible people will realize that whether they're doing well personally doesn't make them immune to the greed of billionaires and predatory corporations. Maybe they will be more open to changes that actually help them. Tossing out both political parties might be a start but that won't happen this time. Just people realizing they've been lied to and played might be a better start. I doubt many are ready for more pain of the level required to break the system as it exists.

I'd settle on people willing to putting away all of the petty differences that have them at each other's throats. Nonsense has kept us from understanding how much we're all in this together. We have no power unless we're together. Maybe having to rely on each other to just get by will change us. I've said for a long time that this is what is necessary before any change can occur. Is that possible from all the carnage?

—

"Ah, but I was so much older then, I'm younger than that now..."

Submitted by Pricknick on Mon, 05/04/2020 - 11:40pm

There will be no system reboot.

@vtcc73
As an ender, I believe and hope humans will revert to natural instinct just before mother nature take us all out.
It's not a pessimistic thought anymore.
That's how I've changed.

—

Regardless of the path in life I chose, I realize it's always forward, never straight.

Submitted by snoopydawg on Mon, 05/04/2020 - 11:16pm

I have been watching this coming from the upper classes

@vtcc73

for a few years. Lots of them were putting down people in the lower class because they were living on the edge, but instead of companies paying them more they put the blame on them for not working harder to move up. Wages have stagnated for them for far too long and especially at the federal minimum wage that hasn’t been raised in over a decade.

But yet here we are with many white collar people being laid off. People like lawyers in large firms and others like that. There sure are lots of doom and gloom articles out there that talk about the economic outlook coming at us. Gawd I hope they are wrong.

—

Which AIPAC/MIC/pharma/bank bought politician are you going to vote for? Don’t be surprised when nothing changes.

Submitted by Unabashed Liberal on Mon, 05/04/2020 - 5:31pm

Could be wrong, but, figure that folks in 'gig'

economy will be afforded support throughout the current economic crisis.

But, professional and other folks with higher middle to upper middle incomes will probably have their Social Security benefits greatly reduced--as called for by the Catfood Commission.

Remember, it was suggested that monthly Social Security benefits (for some) be cut as much as 46+ percent--and, we're not talking about just folks making 6-figure incomes. (Some may recall that I had a chart that I posted at the Google Group. And, IIRC, much smaller cuts began just above $9,000 per annum.) That chart was about '3' laptops, ago, and, to save my life, I can't re-find it.

Anyhoo, it was that chart that got me off my duff to advocate against the so-called "Grand Bargain."

Already, there's talk of needing to rein in the deficits (mandatory spending) as soon as we get a handle on the CV crisis, and, get people back to work. (Sunday political programs)

Frankly, don't even want to think about how this place (US) will look in another year, economically. All I can say is that if I were approaching retirement age, I wouldn't delay drawing SS benefits (pretty soon). Delaying could cost folks anywhere from a few to just under 50%--if, the Bowles-Simpson proposal gets passed and enacted.

Mollie

THANK YOU America's Physicians & Nurses, All Medical Personnel, First Responders, To Include Medical (EMT/Paramedics/Ambulance), Pharmacy Personnel, Fire Depts, Police Depts, Retailers/Grocers--Especially, To Marginally-Paid Frontline Retail Cashiers & Clerks.

Last, but not least,

THANKS to America's Truckers/Delivery Persons, Especially, To Over-The-Road/Long Haul Truckers Who Obviously Have The Capacity To Shut Down The Entire Country, If They Were To Choose To Sit Out The Current Public Health Crisis, In Order To Protect Their Own.

You are all truly heroes.

Godspeed.

“If there are no dogs in Heaven, then when I die, I want to go where they went.”
~~Will Rogers, Actor & Social Commentator

“Love makes you stronger, so that you can reach out and become involved with life in ways you dared not risk alone.”
~~Author Unknown, Save Our Street Dogs (SOSD) Website

“In a world where you can be anything–be kind.”
~~Author Unknown

“I think dogs are the most amazing creatures; they give unconditional love. For me, they are the role model for being alive.”
~~Gilda Radner, Comedienne

Special Health Care for Congress: Lawmakers' Health Care Perks
A little known office on Capitol Hill provides quality care at a low price.

Excerpt:

Sept. 30, 2009— -- This fall while members of Congress toil in the U.S. Capitol, working to decide how or even whether to reform the country's health care system, one floor below them an elaborate Navy medical clinic -- described by those who have seen it as something akin to a modern community hospital -- will be standing by, on-call and ready to provide Congress with some of the country's best and most efficient government-run health care.

Sources said when specialists are needed, they are brought to the Capitol, often at no charge to members of Congress.

"If you had, for example, prostate cancer, you would go to one of the centers of excellence for the country, which would be Johns Hopkins. If you had coronary artery disease, we would engage specialists at the Cleveland Clinic. You would go to the best care in the country. And, for the most part, nobody asked what your insurance was," Balbona said. (Balbona was a former OAP Staff Physician.)

In addition to Balbona, several former staff members and private physicians who have consulted at the OAP as recently as last year agreed to talk to ABC News on background. They described a culture centered on meeting the needs and whims of members of Congress, with almost no concern for cost.

—

Everyone thinks they have the best dog, and none of them are wrong.

Submitted by Shahryar on Mon, 05/04/2020 - 8:17pm

they can't cut current Soc Sec recipients

@Unabashed Liberal

People would die. Republicans depend on old people voting for them so they'd oppose it. Dems couldn't do it or they'd really go extinct!

However...I can see future 65, 66, 67 year olds getting less when they get there.

Then there's the nagging thought that they could cut Social Security when they discard voting. "It was a very good idea for its time but now..." Then they wouldn't have to worry about backlash.

economy will be afforded support throughout the current economic crisis.

But, professional and other folks with higher middle to upper middle incomes will probably have their Social Security benefits greatly reduced--as called for by the Catfood Commission.

Remember, it was suggested that monthly Social Security benefits (for some) be cut as much as 46+ percent--and, we're not talking about just folks making 6-figure incomes. (Some may recall that I had a chart that I posted at the Google Group. And, IIRC, much smaller cuts began just above $9,000 per annum.) That chart was about '3' laptops, ago, and, to save my life, I can't re-find it.

Anyhoo, it was that chart that got me off my duff to advocate against the so-called "Grand Bargain."

Already, there's talk of needing to rein in the deficits (mandatory spending) as soon as we get a handle on the CV crisis, and, get people back to work. (Sunday political programs)

Frankly, don't even want to think about how this place (US) will look in another year, economically. All I can say is that if I were approaching retirement age, I wouldn't delay drawing SS benefits (pretty soon). Delaying could cost folks anywhere from a few to just under 50%--if, the Bowles-Simpson proposal gets passed and enacted.

Mollie

THANK YOU America's Physicians & Nurses, All Medical Personnel, First Responders, To Include Medical (EMT/Paramedics/Ambulance), Pharmacy Personnel, Fire Depts, Police Depts, Retailers/Grocers--Especially, To Marginally-Paid Frontline Retail Cashiers & Clerks.

Last, but not least,

THANKS to America's Truckers/Delivery Persons, Especially, To Over-The-Road/Long Haul Truckers Who Obviously Have The Capacity To Shut Down The Entire Country, If They Were To Choose To Sit Out The Current Public Health Crisis, In Order To Protect Their Own.

You are all truly heroes.

Godspeed.

“If there are no dogs in Heaven, then when I die, I want to go where they went.”
~~Will Rogers, Actor & Social Commentator

“Love makes you stronger, so that you can reach out and become involved with life in ways you dared not risk alone.”
~~Author Unknown, Save Our Street Dogs (SOSD) Website

“In a world where you can be anything–be kind.”
~~Author Unknown

“I think dogs are the most amazing creatures; they give unconditional love. For me, they are the role model for being alive.”
~~Gilda Radner, Comedienne

Special Health Care for Congress: Lawmakers' Health Care Perks
A little known office on Capitol Hill provides quality care at a low price.

Excerpt:

Sept. 30, 2009— -- This fall while members of Congress toil in the U.S. Capitol, working to decide how or even whether to reform the country's health care system, one floor below them an elaborate Navy medical clinic -- described by those who have seen it as something akin to a modern community hospital -- will be standing by, on-call and ready to provide Congress with some of the country's best and most efficient government-run health care.

Sources said when specialists are needed, they are brought to the Capitol, often at no charge to members of Congress.

"If you had, for example, prostate cancer, you would go to one of the centers of excellence for the country, which would be Johns Hopkins. If you had coronary artery disease, we would engage specialists at the Cleveland Clinic. You would go to the best care in the country. And, for the most part, nobody asked what your insurance was," Balbona said. (Balbona was a former OAP Staff Physician.)

In addition to Balbona, several former staff members and private physicians who have consulted at the OAP as recently as last year agreed to talk to ABC News on background. They described a culture centered on meeting the needs and whims of members of Congress, with almost no concern for cost.

Submitted by Unabashed Liberal on Mon, 05/04/2020 - 10:36pm

Yeah, that's the cohort I was referring to, Shah. Of

@Shahryar

course, 'O' tried like heck to get the "Chained CPI" through--which affects both current and future SS beneficiaries. So, not sure it'd be a stretch to expect that to be part of a future so-called "Grand Bargain."

Also, due to the tremendous and unexpected COVID spending, it wouldn't totally shock me is they did try to 'trim' current retirees' benefits--if they could figure a way to do it, aside from flat-out recalculating the benefit under a new formula (which Bowles-Simpson advocates).

Hopefully, that won't happen. Time will tell, I suppose.

Mollie

Last, but not least,

You are all truly heroes.

Godspeed.

“If there are no dogs in Heaven, then when I die, I want to go where they went.”
~~Will Rogers, Actor & Social Commentator

“Love makes you stronger, so that you can reach out and become involved with life in ways you dared not risk alone.”
~~Author Unknown, Save Our Street Dogs (SOSD) Website

“In a world where you can be anything–be kind.”
~~Author Unknown

“I think dogs are the most amazing creatures; they give unconditional love. For me, they are the role model for being alive.”
~~Gilda Radner, Comedienne

Special Health Care for Congress: Lawmakers' Health Care Perks
A little known office on Capitol Hill provides quality care at a low price.

Excerpt:

Sept. 30, 2009— -- This fall while members of Congress toil in the U.S. Capitol, working to decide how or even whether to reform the country's health care system, one floor below them an elaborate Navy medical clinic -- described by those who have seen it as something akin to a modern community hospital -- will be standing by, on-call and ready to provide Congress with some of the country's best and most efficient government-run health care.

Sources said when specialists are needed, they are brought to the Capitol, often at no charge to members of Congress.

"If you had, for example, prostate cancer, you would go to one of the centers of excellence for the country, which would be Johns Hopkins. If you had coronary artery disease, we would engage specialists at the Cleveland Clinic. You would go to the best care in the country. And, for the most part, nobody asked what your insurance was," Balbona said. (Balbona was a former OAP Staff Physician.)

In addition to Balbona, several former staff members and private physicians who have consulted at the OAP as recently as last year agreed to talk to ABC News on background. They described a culture centered on meeting the needs and whims of members of Congress, with almost no concern for cost.

—

Everyone thinks they have the best dog, and none of them are wrong.

Submitted by snoopydawg on Mon, 05/04/2020 - 11:59pm

Trump has said that any bill going forward must include

@Unabashed Liberal

payroll tax cut and Romney is suggesting that too, but he is also offering a monthly stipend. This will be split between the ~~girls~~ government and businesses and one other I think. Of course people are freakin out about this because it keeps money out of social security funds. But lo and behold guess who already did this? Yep. Obama did it for 2 years during the recession. But according to some centrists it was kinda okay for him to do that. Why you ask? Reasons of course.

ETA I had to kick auto correct’s buttocks.

#4.1

course, 'O' tried like heck to get the "Chained CPI" through--which affects both current and future SS beneficiaries. So, not sure it'd be a stretch to expect that to be part of a future so-called "Grand Bargain."

Also, due to the tremendous and unexpected COVID spending, it wouldn't totally shock me is they did try to 'trim' current retirees' benefits--if they could figure a way to do it, aside from flat-out recalculating the benefit under a new formula (which Bowles-Simpson advocates).

Hopefully, that won't happen. Time will tell, I suppose.

Mollie

THANK YOU America's Physicians & Nurses, All Medical Personnel, First Responders, To Include Medical (EMT/Paramedics/Ambulance), Pharmacy Personnel, Fire Depts, Police Depts, Retailers/Grocers--Especially, To Marginally-Paid Frontline Retail Cashiers & Clerks.

Last, but not least,

THANKS to America's Truckers/Delivery Persons, Especially, To Over-The-Road/Long Haul Truckers Who Obviously Have The Capacity To Shut Down The Entire Country, If They Were To Choose To Sit Out The Current Public Health Crisis, In Order To Protect Their Own.

You are all truly heroes.

Godspeed.

“If there are no dogs in Heaven, then when I die, I want to go where they went.”
~~Will Rogers, Actor & Social Commentator

“Love makes you stronger, so that you can reach out and become involved with life in ways you dared not risk alone.”
~~Author Unknown, Save Our Street Dogs (SOSD) Website

“In a world where you can be anything–be kind.”
~~Author Unknown

“I think dogs are the most amazing creatures; they give unconditional love. For me, they are the role model for being alive.”
~~Gilda Radner, Comedienne

Special Health Care for Congress: Lawmakers' Health Care Perks
A little known office on Capitol Hill provides quality care at a low price.

Excerpt:

Sept. 30, 2009— -- This fall while members of Congress toil in the U.S. Capitol, working to decide how or even whether to reform the country's health care system, one floor below them an elaborate Navy medical clinic -- described by those who have seen it as something akin to a modern community hospital -- will be standing by, on-call and ready to provide Congress with some of the country's best and most efficient government-run health care.

Sources said when specialists are needed, they are brought to the Capitol, often at no charge to members of Congress.

"If you had, for example, prostate cancer, you would go to one of the centers of excellence for the country, which would be Johns Hopkins. If you had coronary artery disease, we would engage specialists at the Cleveland Clinic. You would go to the best care in the country. And, for the most part, nobody asked what your insurance was," Balbona said. (Balbona was a former OAP Staff Physician.)

In addition to Balbona, several former staff members and private physicians who have consulted at the OAP as recently as last year agreed to talk to ABC News on background. They described a culture centered on meeting the needs and whims of members of Congress, with almost no concern for cost.

—

Which AIPAC/MIC/pharma/bank bought politician are you going to vote for? Don’t be surprised when nothing changes.

Submitted by Unabashed Liberal on Mon, 05/04/2020 - 11:45pm

Excellent points, SD! You nailed it--

@snoopydawg

totally acceptable thing to do, when "O" did it.

Maybe I'm wrong, but, figure that the PtB will soon start talking about striking a so-called Grand Bargain--trimming "entitlements," as they like to say.

IOW, we're probably scr*wed, period.

Mollie

—

Everyone thinks they have the best dog, and none of them are wrong.

Submitted by Pricknick on Tue, 05/05/2020 - 12:05am

How to have fun with word hippo

@Unabashed Liberal
What is another word for screwed?
https://www.wordhippo.com/what-is/another-word-for/screwed.html

—

Regardless of the path in life I chose, I realize it's always forward, never straight.

Submitted by snoopydawg on Tue, 05/05/2020 - 12:23am

I’m with you here

@Unabashed Liberal

Mitch is sayin that he is worried about the deficit now and he doesn’t want anymore bills right now. Unless democrats meet his redline and gives businesses the payroll tax cut and probably immunity from lawsuits. Well if they don’t have to pay for workers compensation insurance they will be on the hook for being sued. Nice win for them all the way round. Schumer did not discount doing that of course.

Also nursing homes are asking for immunity too even though they deliberately did not get their employees PPE or do anything to keep people from dying. Patient’ Families tried everything they could do to get answers for what was happening to their parents etc. Both Newsom and Cuomo have given it to them. This seemed to me a deliberate attempt of culling the herd. This same thing happened to veterans hospitals. Of course this saves the government lots of big bucks in social security and veteran’s benefits.

Side note here. I see lots of people only blaming Trump for everything that has gone wrong. He didn’t close the country down soon enough. He didn’t have supplies on hand and other issues like that. It’s true. Sorta and I’ll get back to it after I question why didn’t States have the same things that people are blaming Trump for? Cuomo didn’t close the airports until the middle of March nor did Newsom IIRC.Neither of them tellpeople to stay home, etc

But does anyone really believe that the government didn’t have plans for an epidemic? People were warned during both Bush and Obama’s administrations. Twice during O’s. Let’s take the food supply. They have let farmers dump millions of pounds of food and milk, etc. I can’t believe that they didn’t have plans in place for it. And Trump was told about this issue for over a month before he started doing anything about it. Why couldn’t he or any governor jump on this issue? Now meat, eggs, milk and other items are going up just as people are running out of money. Feature and not a bug? I think so. But then I am this cynical.

—

Which AIPAC/MIC/pharma/bank bought politician are you going to vote for? Don’t be surprised when nothing changes.

Submitted by enhydra lutris on Mon, 05/04/2020 - 5:38pm

The perceived harm (or benefit) from this will probably

depend upon who's frog is being gigged. Frankly, I am loving the fact that there is a dearth of renters for the rentiers to prey upon.

be well and have a good one.

—

That, in its essence, is fascism--ownership of government by an individual, by a group, or by any other controlling private power. -- Franklin D. Roosevelt --

Submitted by gjohnsit on Tue, 05/05/2020 - 3:25pm

Airbnb lays off 25% of workforce

it's started