"Crowd" sourcing

Work is supposedly about employees trading their labor for wages, pushed as a model of simplicity and equity. It can be seen as extracting from workers the lifeblood that keeps businesses alive, rather than supplying workers the means to live. What began as layoffs, outsourcing, and downsizing became the new normal, and is now being sold to workers as 'freeing' and a boon to 'motivated self-starters'. The idea is to work two or three low-paying, part-time jobs without benefits because, "Why put your eggs all in one basket," and, "Why depend on work for health insurance"? In addition, we have a slew of 'startups' that want to (allow workers to) take advantage of these conditions. Uber, Airbnb, and other 'collaborative consumption' companies - supposedly parts of a new 'sharing economy' - offer the illusion of opportunity, profitability, and a community base. They are packaged as creating opportunities for individuals to live the dream of independent contracting: set your own schedule, choose which jobs to take, be 'your own boss', and leverage your assets into unlimited earning potential.  The upstarts claim disruption, and an alternative to 'the establishment', supposedly easing the way for regular folks to cash in. Rather than taxi companies hogging the market, these companies will allow regular people to get in on the action. Instead of paying for a mortgage (or lease), one can become part of the hospitality industry and get a little extra for minimal effort. However, they are still privately owned companies looking to maximize profit for themselves.

It could be that the change started with personal vehicles being used for business delivery. This process shifted the burden onto individuals rather than businesses for business expenses. While offset by requirements to laws regarding reimbursement and insurance, it still placed the burden on the employee to learn, abide by, and then enforce these regulations with their own employer. This is most problematic in fields that had no history of doing so. The essence of all these actions is the uncertainty faced by workers. The question that follows is whether this change is better for workers, or only benefits the business. The test is how each practice happens and the results in the real world, not just the theory. In reality, Uber bullys cab companies, drivers, and local governments to get what it wants. Airbnb displaces responsibility and implies more than it delivers.

A few examples, with sources and further reading at the bottom of this post. In the City of San Francisco Airbnb should have collected and remitted $1.9 million in taxes, over 90% of hosts surveyed spent nearly half what they made on living expenses, and it continues to use drip pricing (which does not allow consumers to preview their total price). The legal agreements that Airbnb members are required to accept amount to "55081 words," equivalent to a short novel requiring several hours of reading time. In San Francisco, Airbnb hosts who control multiple properties comprise 4.8% of hosts and control 18.2% of the listings; in a similar company (HomeAway), 14.8% of total hosts control 46% of listings . These "super hosts" are like property mangers without any oversight or accountability. People also use these sites to set up Hacker Hostels (so-called because they lure techies and the like into short-term accommodations), which are problematic because they may flout a variety of city rules on overcrowding. Finally, for some perspective, a city such as San Francisco typically adds 2,000 homes in a year, and these companies take 200+ units off the market - a meaningful percentage.


I propose that choice is most meaningful when individuals are fully informed about consequences and willingly accept. In new and untested situations, these conditions do not apply and the potential for abuse is acute.


Wikipedia list of companies

Excellent article on pros and cons


Uber and taxis

Airbnb and San Francisco