the real innovation from on-demand services is their ability to transfer more money from labor to capital
DoorDash hasn't transferred any money to capital! They are still private. In fact, it is the opposite. Transfers have been from the capital of their investors to labor and to consumers.
There is plenty of innovation here - Uber is a lot nicer than phoning up the taxi company, and DoorDash is a lot nicer than phoning up some small restaurants to get food delivered. The lack of innovation is not the problem.
The problem is that there is no moat. DoorDash, Uber Eats, Postmates, and GrubHub are all providing the same service. There are millions of people capable of being a driver for these services. So competition is currently squeezing profits to zero or negative, and squeezing worker pay. Competition isn't helping the VCs, it's helping the consumers.
Eventually, if some of these companies go out of business, the remaining ones will be able to raise prices, which will be worse for consumers but better for the investors and perhaps better for drivers.
DoorDash hasn't transferred any money to capital! They are still private. In fact, it is the opposite. Transfers have been from the capital of their investors to labor and to consumers.
There is plenty of innovation here - Uber is a lot nicer than phoning up the taxi company, and DoorDash is a lot nicer than phoning up some small restaurants to get food delivered. The lack of innovation is not the problem.
The problem is that there is no moat. DoorDash, Uber Eats, Postmates, and GrubHub are all providing the same service. There are millions of people capable of being a driver for these services. So competition is currently squeezing profits to zero or negative, and squeezing worker pay. Competition isn't helping the VCs, it's helping the consumers.
Eventually, if some of these companies go out of business, the remaining ones will be able to raise prices, which will be worse for consumers but better for the investors and perhaps better for drivers.