WeWork is an extraordinary story. Apparently a documentary has been made on it, but it is only on Hulu. It is sort of reassuring in a way that even those with mythical investment reputations can get completely suckered in by a smooth talking trendy CEO.Remember WeWork, the office rental company that disguised itself as something else that pulled its float, had been seen through?
Couple of points.Exploit your workers and the local restaraunts....Maybe the recent ruling against Uber has had a impact,hopefully !
When companies are floated and shares are offered to the general public, it is always 2 fold - one is to raise more funds to grow and second is for the initial investors and founders to realise some value from their original investment (their payday). It is never done for an altruistic reason like sharing the bounty.Good evening,
Way back in the 2000s I lost a bit of money when I had shares in a company called Acuma, they specialised in arranging Individual Voluntary Agreements, the legal work-around when you have borrowed more than you can afford to repay.
The business closed because at the end of the day it didn't have a fair business proposition, someone in the chain had to lose, in this case it was the lenders and the "customers", the borrowers didn't want to pay, the industry operated on a contingency basis.
Provident and Amigo loans have both recently got into trouble by lending to people who couldn't afford to repay the loans and eventually the regulators caught up with them. In the case of Provident they had been doing this for over 100 years. Interestingly they guy who founded Amigo, James Benamor has stated that he wanted Amigo to move to the unregulated Klarna type model once Amigo got "told off"
These businesses model also have losers, people with low income who pay very high interest rates of 50% or more.
A lot of the Deliveroo type businesses also have a loser, the worker, they managed to sell the argument that flexibility was worth more than the benefits of being an employee and its associated taxes. But after a while many workers realised that they had done the same as many farmers did many years ago when they supplied their whole production to one customer, a supermarket.
On day 1 it probably was a good deal, once the worker/farmer has become "captive" the exploitation starts.
However Deliveroo is hardly unique in how it treats employees (or not employees), but are also having issues with how many customers /suppliers who don't really want to pay the fees. If you look at a lot of the advertising, Greggs, McD, KFC are being touted as suppliers rather than independent local higher value food providers. I am an occasional McD customer but can't imagine paying to have it delivered.
Does Deliveroo Editions say to many restaurants, "thanks for helping us get started, we will now make your business obsolete?".
Remember WeWork, the office rental company that disguised itself as something else that pulled its float, had been seen through?
It's easy to say we have ethical issues if you believe that the business is never going to be profitable and don't want to buy it.
There are private tech companies around the world that has a San Francisco address and it is actually a WeWork location with no staff. Just the address that is rented. It became a red flag.WeWork is an extraordinary story. Apparently a documentary has been made on it, but it is only on Hulu. It is sort of reassuring in a way that even those with mythical investment reputations can get completely suckered in by a smooth talking trendy CEO.
Lots of money floating about looking for the promise of higher returns than available through traditional investments. And an almost equal number of
conmen"visionaries" looking to relieve those investors of that cash.
Im not so sure ?1. Deliveroo staff are paid just below £9 an hour on average. It has been called a scam in Australia. After the recent UK Supreme court landmark ruling and Uber converting drivers to full-time, this is going to be dicey