The sharing economy has morphed - or deconstructed- into the on-demand economy
more questions are raised about the key to the real nature of its financial and operational advantage.
But if, as appears likely, companies that used the lower wages and benefits derived from skirting regulatory oversight and almost a century of workforce protections are forced to adhere to them, their competitive status will be further eroded, forcing them to acknowledge that they are just another low-wage dead-end with a thin technological overlay.
The good news, for those who believe this has been a revolutionary development, is that there is a history in tech of successful enterprises claiming protection and then moving out from under it when those negatively impacted by it demand that they play by the same rules. Amazon comes to mind. JL
Greg Bensinger reports in the Wall Street Journal:
“Many of these companies operate on very thin margins—not all can absorb
the hit of having to switch to an employee workforce. There is a real regulatory risk here, which we have to weigh,
that some of these companies could owe millions in back wages and
taxes.”