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2015-10-21_A-second-issue-with-the--uber-for---model-is-that-it-s-a-tax-evasion-scheme-that-also--in-the-minds--f0e49937cdad.html
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<!DOCTYPE html><html><head><meta http-equiv="Content-Type" content="text/html; charset=utf-8"><title>A second issue with the ‘uber for…’ model is that it’s a tax evasion scheme that also, in the minds…</title><style>
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<h1 class="p-name">A second issue with the ‘uber for…’ model is that it’s a tax evasion scheme that also, in the minds…</h1>
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The formula is stupid, simple, and thus far pretty reliably successful as far as literally anything in the domain of startups goes: take an…
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<section name="cfef" class="section section--body section--first section--last"><div class="section-divider"><hr class="section-divider"></div><div class="section-content"><div class="section-inner sectionLayout--insetColumn"><p name="de98" id="de98" class="graf graf--p graf--leading">A second issue with the ‘uber for…’ model is that it’s a tax evasion scheme that also, in the minds of investors and credulous media people, transforms a service company into a tech company. (Nevermind that there have been taxi services with Uber-style smartphone apps for hailing cabs since before Uber came around who, of course, got comparatively little out of that because they quite sensibly didn’t consider themselves to be a tech company.)</p><p name="12da" id="12da" class="graf graf--p graf-after--p graf--trailing">The formula is stupid, simple, and thus far pretty reliably successful as far as literally anything in the domain of startups goes: take an existing service, fire all the employees and replace them with untrained contract workers, spend an afternoon on a smartphone app or mobile site, and call yourself a tech company. Since the tech involved is extremely simple — your fourteen year old nephew can do it after school — this is sort of a brave re-branding. But, non-tech companies in the valley don’t get ten billion dollar valuations, do they? And if you have a ten billion dollar valuation, who cares if you make a profit?</p></div></div></section>
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<footer><p>By <a href="https://medium.com/@enkiv2" class="p-author h-card">John Ohno</a> on <a href="https://medium.com/p/f0e49937cdad"><time class="dt-published" datetime="2015-10-21T13:35:59.143Z">October 21, 2015</time></a>.</p><p><a href="https://medium.com/@enkiv2/a-second-issue-with-the-uber-for-model-is-that-it-s-a-tax-evasion-scheme-that-also-in-the-minds-f0e49937cdad" class="p-canonical">Canonical link</a></p><p>Exported from <a href="https://medium.com">Medium</a> on January 21, 2025.</p></footer></article></body></html>