I haven't followed much of this, but I've heard for a while about Uber and WeWork's struggles.
Is this other stuff true? O_o
I don't usually make article threads like these.. so if I pasted too much from the article, let me know.....and I'll edit it. But there is more in there.
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Is this other stuff true? O_o
I've decided to do this now because I know all of these goodies will be disappearing very soon — from my phone, from your phone and from the overall economy.
The reason is simple. Remember all of those IPOs that were supposed to bring a tsunami of tech wealth to wipe out what's left of the Bay Area's housing, lifestyle and culture this year?
Yeah, that's not how it went.
Uber was supposed to have the biggest IPO of the year. Instead its stock has dropped 30% since that IPO, it's laying off hundreds of employees, reporting billions of dollars' worth of losses, and fighting the state of California to avoid paying benefits to its drivers. Analysts are saying that Uber and its closest competitor, Lyft, have "no path to profitability."
WeWork — another company that was supposed to lead to massive "liquidity events" — was the latest to stumble into this crucible. For years, co-founder Adam Neumann put on a song-and-dance show so good, WeWork had a $47 billion valuation. Then regular investors got a look at the company's laughable prospectus and dreadful financials. Now Neumann is out of a job and WeWork is out of the IPO race altogether.
Suspending the need to schedule basic daily tasks, like cooking your own meals, because you can just get another coupon from a meal delivery app?
Need I remind you how suddenly Munchery closed its on-demand meal service earlier this year?
The party can't last forever, and this isn't a tragedy. Some form of honesty — or, failing that, profitability — should remain a basic business tenet for companies looking to survive.
But at some point, the venture capital subsidies are going to run out, and we'll all be left to pay the true cost of conveniences that were, historically, luxuries.
I don't usually make article threads like these.. so if I pasted too much from the article, let me know.....and I'll edit it. But there is more in there.
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Just finished reading this one and it's more informative than the article in the OP, IMO.
The Millennial Urban Lifestyle Is About to Get More Expensive
As WeWork crashes and Uber bleeds cash, the consumer-tech gold rush may be coming to an end.www.theatlantic.com
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