Reread the section about Lupe's attempt to reach the client in time.
I feel like companies in these markets will eventually reap the whirlwind when the USG decides not to allow people filling these roles to be classified as 1099s, and the whole segment falls apart. Or maybe I just hope it.
These startups are essentially converting monthly wage jobs back into piecework jobs. Not satisfied with rolling back the new deal, we're now rolling back the progressive era.
People who work these jobs never had a monthly wage job to begin with. If you're fully employed as a house-cleaner, why bother with Handy? If you're a full-time black car driver, why even bother with Uber?
This is lead-gen business for industries that tend to have a large amount of self-employed individuals to begin with.
The $35k/year/worker support staff would seem to be the only capital-intensive aspect of the business.
I've seen several people try to start services like "Handy" and fail due to this.
One big problem is that the best tradespeople already have work, and don't need lead generation services.
What's really sad is that ordinary folks are complicit in the exploitation as they don't see anything past the pretty UI. They think they're hiring vetted people who're treated well, when in reality, they're better off being hired directly via old-school Yellow Pages or even Craigslist.
For all the hoopla about Facebook et al. the old-fashioned forums are still a hotbed of activity for services like this.
While I totally agree with this I wonder about whether / why people working this jobs would be re-classified?
Many if not most people I know in work in technology on 1099 and are applied in ways which would seem to be more clearly misclassified than these workers.
Is that how you view it, and then go on to classify it as exploitation? The fact that these individuals are somehow treated unfairly?
Following from that, how would you change it so that it fits within your definition of fair?