[HN Gopher] Scale Ruins Everything
       ___________________________________________________________________
        
       Scale Ruins Everything
        
       Author : drc500free
       Score  : 66 points
       Date   : 2024-10-14 17:34 UTC (5 hours ago)
        
 (HTM) web link (coldwaters.substack.com)
 (TXT) w3m dump (coldwaters.substack.com)
        
       | endo_bunker wrote:
       | Comical to suggest that AirBnB "ruined communities" or "destroyed
       | the dream of home ownership" as if decades of federal, state, and
       | local government policy had not already guaranteed those
       | outcomes.
        
         | api wrote:
         | Yeah I'm tired of this too. Real estate hyperinflation is
         | almost entirely the fault of chronically under-building real
         | estate due to regulatory capture by landlords, legacy
         | homeowners, and speculators. The real estate market is more or
         | less a cartel in quite a few places.
         | 
         | AirBnB is a small factor. I suppose it drives up prices, but
         | only because supply is so absurdly tight.
        
           | Blackthorn wrote:
           | 100% of code uses 100% of resources. Let's not downplay the
           | role of Airbnb as both a company and a phenomena for causing
           | inflation. But more than that, remember that a lot happens at
           | the margins in these markets: what's actually liquid or in
           | play is a small part of the overall stock. So anything that
           | messes with that will have an outsized effect.
        
           | robertlagrant wrote:
           | You can define it as under-building, but that's only one side
           | of the political effect. E.g. the UK net immigration rate has
           | been pretty enormous, and it seems lopsided to call it under-
           | building to have not built homes for a giant number of people
           | coming from their previous homes elsewhere in the world to
           | the UK.
           | 
           | Speaking as the son of an immigrant, married to an immigrant,
           | for the people who can only think tribally, and must assume I
           | am doing the same.
        
             | arccy wrote:
             | most of these are legal immigrants, so the country decided
             | to accept them, and yet failed to build enough to keep up
             | with demand that they allowed.
        
             | Hammershaft wrote:
             | Underutilization of land as a result on speculation on the
             | growth of land prices is a major reason, even Manhattan has
             | massive chunks of real estate that are vacant, a land value
             | tax would fix this.
        
         | sgdfhijfgsdfgds wrote:
         | Airbnb has _in fact_ ruined communities and destroyed the dream
         | of home ownership for an entire class of people: those who
         | would already be buying at the limits of their budgets to stay
         | where they were brought up.
         | 
         | This happened even in areas where holiday home ownership and
         | rental was common as a business.
         | 
         | The failure of government to grapple with the negative effects
         | of Airbnb is a separate thing. Airbnb are, in fact, in control
         | of their own morality.
        
           | robertlagrant wrote:
           | You need to explain why AirBnB did this as opposed to other
           | factors. Renting your house out predates AirBnB.
        
             | sgdfhijfgsdfgds wrote:
             | I _need_ to?
             | 
             | Thanks for the unnecessary correction, when it's pretty
             | clear that my comment you are replying to includes the
             | words "even in areas where holiday home ownership and
             | rental was common as a business".
             | 
             | I don't know why it did not happen before.
             | 
             | All I know is that the situation in coastal resort towns in
             | Cornwall, Devon, and elsewhere in the UK changed _utterly_
             | when Airbnb became a thing.
             | 
             | I could guess that barrier to entry was always an issue
             | before then; the relative complexity and process involved
             | in listing a property with e.g. Hoseasons, who were the
             | dominant player in the 80s and 90s, and who inspected
             | properties and had greater requirements.
             | 
             | But either way, Airbnb _did_ unambiguously change things.
             | Ask people who lived in Cornish towns whether they 're even
             | able to rent a room or a flat.
        
               | JackYoustra wrote:
               | I mean, usually if thing popular, make more of thing
               | until everyone can have it? I guess we could go with your
               | solution of deliberately killing demand with bizarre
               | mechanisms so only a few people can enjoy a holiday
               | instead of pointing the blame where it demands: locals
               | fighting tooth and nail to not build more.
               | 
               | Nimbys are basically hukou advocates in disguise. After
               | all, it's the only solution if you don't primarily place
               | the blame on lack of construction.
        
               | sgdfhijfgsdfgds wrote:
               | > make more of thing until everyone can have it?
               | 
               | There are literal physical limits on this in many coastal
               | villages and towns -- for example pick almost anywhere on
               | the south west coast of the UK. Not only is the area on
               | which houses can be built restrictive due to geography
               | (and often geology), the transport infrastructure does
               | not scale. New property building both has not caught up
               | with, and probably cannot catch up with, short term
               | demand.
               | 
               | As it happens, a collapse seems likely, because local
               | sentiment is turning against them so fast and because of
               | general economic weakness; the number of "thriving
               | holiday let" properties that are on the market now
               | suggests that Airbnb's own accelerating rental costs
               | problem is going to cause a bit of a bust.
               | 
               | But that bust will not benefit most of the people in the
               | areas affected where the price of a small house is twenty
               | to thirty times the average salary of would-be-first-
               | time-buyers. Those people are leaving, so there will
               | instead be a ghost town. And the sheer number of
               | residents who are temporary has destroyed the potential
               | for long-term stable infrastructure businesses for
               | residents.
               | 
               | > Nimbys are basically hukou advocates in disguise.
               | 
               | It's nothing to do with nimbyism, is it? Nimbys are
               | property owners. The problem only affects people who _do
               | not have back yards_. They can no longer afford the
               | houses at the prices at which they will be built and the
               | rates at which they can be.
        
               | kelnos wrote:
               | > _It 's nothing to do with nimbyism, is it? Nimbys are
               | property owners. The problem only affects people who do
               | not have back yards._
               | 
               | NIMBYs are property owners who vote for restrictive
               | housing development policy in order to prop up their own
               | home values.
               | 
               | Eliminate the NIMBYs and you end up with a lot more
               | people who can have their own backyard.
        
           | etothepii wrote:
           | As a home owner that was only able to afford to buy a house
           | _because_ we were able to rent out the spare rooms on AirBnb
           | I find fault in your logic.
           | 
           | I think you'll find that zoning/planning permission is the
           | real bad guy here. That and a failure to understand Adam
           | Smith and implement the ideas of Henry George.
        
             | sgdfhijfgsdfgds wrote:
             | > because we were able to rent out the spare rooms on
             | AirBnb
             | 
             | Unless you were the very first person in the entire area to
             | think to do so, then the existence of that very market for
             | you to rent spare rooms on is actually driving up the
             | prices of properties so you have to do so.
             | 
             | It's also driving up the prices of long term rental,
             | because landlords make more money in the short-term rental
             | market. The prices of long-term rental also affect the
             | floor price of permanent ownership.
        
             | ToucanLoucan wrote:
             | > As a home owner that was only able to afford to buy a
             | house because we were able to rent out the spare rooms on
             | AirBnb I find fault in your logic.
             | 
             | Then you're a landlord who has purchased more of a scarce
             | resource than they require (a house larger than you need)
             | who has then turned around and rented access to the extra
             | you have to people who can't afford a home of their own,
             | and in so doing have driven the cost of homeowner-ship just
             | _slightly_ higher, which was the reason you couldn 't
             | afford it in the first place. Repeat that a few thousand
             | times and that's a huge contributing factor to why housing
             | is in such a dire state here.
             | 
             | You haven't solved anything. You just went from being an
             | exploited person to being an exploiter instead, taking
             | advantage of people you should have solidarity with and
             | inflicting the harm the system was inflicting on you, onto
             | them instead. The system will continue feasting on people
             | who can't manage the same as you did, and you now posses
             | wealth you did not earn.
        
               | kelnos wrote:
               | Homes on the market aren't infinitely customizable. It
               | seems perfectly likely that GP would have been happy to
               | buy a home with exactly the amount of space they needed,
               | but such a home was not available at a price they could
               | pay. (Maybe they settled for a slightly less-nice
               | neighborhood, or a slightly less-nice house, that just
               | happened to provide an extra room or two.)
               | 
               | Even if that wasn't the case, I don't see a problem with
               | buying slightly larger than is necessary, because (for
               | example) perhaps they're planning to have a couple kids
               | in the next few years, but will rent out the extra space
               | until then. Moving is transactionally expensive, and
               | expecting someone to move every few years as their space
               | needs change is unreasonable.
               | 
               | Regardless, you seem a bit overly judgmental about this
               | entire situation, and about someone you don't know at
               | all.
        
               | lacy_tinpot wrote:
               | You need to really distinguish between rent seeking
               | landowners, and value add landowners.
               | 
               | Landowners that have made improvements to the land and
               | seek financial compensation for those improvements, in
               | this case in the form of providing a service, is NOT rent
               | seeking behavior.
               | 
               | That is NOT exploitation.
               | 
               | This is even basic economics from an extremely leftist
               | POV, where those that have added labor value, that is
               | improvements to the land, in this case providing a
               | service and perhaps building a unit, managing them, etc.
               | should be compensated for their labor.
               | 
               | Like this is extremely basic stuff.
        
               | ToucanLoucan wrote:
               | > You need to really distinguish between rent seeking
               | landowners, and value add landowners.
               | 
               | No, I don't. Rent-seeking is derided behavior by
               | basically everyone who isn't rent-seeking.
               | 
               | If you buy property, improve it, and sell it, there's
               | your profit for providing that service. No ethical lapse
               | whatsoever, unless you used that godawful gray laminate
               | that every flipper uses. Then I'm mad at you still but
               | that's a different reason.
               | 
               | If you own a thing that people need, and you gate access
               | to it behind a paywall while maintaining ownership, and
               | extract value from those people so they may use it but
               | retain full ownership and control of it, that's rent-
               | seeking and it sucks. You're the economic version of wind
               | drag.
               | 
               | Yes, that includes the 98 year old lady who rents out a
               | room to fill the gaps left by social security to the nice
               | young man who's going to college in the area. Still value
               | extraction. That young man is losing the value of his
               | labor because he has to live somewhere and she has space
               | he can live in. That's unethical.
        
           | Hammershaft wrote:
           | AirBnB rentals are not making it criminal to build supply,
           | local zoning regulations that benefit incumbents at the
           | expense of everyone else are what make it criminal to build
           | supply.
           | 
           | It's a defect at the intersection of capitalism, property
           | ownership, and democracy.
        
             | g-b-r wrote:
             | What do you think would happen if you filled a cozy
             | touristic town with skyscrapers?
        
           | lacy_tinpot wrote:
           | AirBnB destroyed home ownership?
           | 
           | As far as I can remember AirBnB didn't cause the 2008
           | financial disaster that really sealed the fate of
           | homeownership in America for the next decade for a lot of
           | Americans.
           | 
           | AirBnB has provided an avenue to generate income for small
           | business owners in rural communities. Urban areas are
           | struggling because they aren't building more.
           | 
           | BUILD MORE. How difficult is it to understand that?
        
             | sgdfhijfgsdfgds wrote:
             | > AirBnB destroyed home ownership?
             | 
             | What I said was rather more specifically qualified than
             | that.
        
               | lacy_tinpot wrote:
               | > Airbnb has in fact ruined communities and destroyed the
               | dream of home ownership for an entire class of people:
               | those who would already be buying at the limits of their
               | budgets to stay where they were brought up.
               | 
               | The thing that's "ruined communities and destroyed the
               | dream of home ownership" is the incapacity of the
               | community, "where they were brought up", to actually
               | change and accommodate increasing demands.
               | 
               | In reality these individuals from these communities are
               | using Left rhetoric to advocate an extremely conservative
               | position. That is for the community to remain as is, in
               | the exact way such people were "brought up", such that no
               | progress, no change, no additional value is added to the
               | communities.
               | 
               | What ends up happening because of this confused policy is
               | that the individuals in these communities both lose out
               | on their hometown, the community ends up changing, and it
               | becomes impossibly expensive for everyone in the
               | community. IE the worst of all options.
               | 
               | Instead. Build more. Build vertically. Build better
               | infrastructure. Provide for local residents an
               | opportunity to "buy-in".
               | 
               | This kind of cloaked conservatism, masquerading itself
               | using leftist rhetoric ends up being confused from a
               | policy POV.
        
           | TrainedMonkey wrote:
           | > Airbnb has in fact ruined communities and destroyed the
           | dream of home ownership for an entire class of people
           | 
           | That is fair, but also misses the point. The issue with
           | AirBnB is not that they are evil company and must be
           | regulated. It's that they operate in a system where housing
           | is an investment vehicle due to artificially constrained
           | supply and tax system that is riddled with well intentioned
           | and widely abused property ownership cuts. At worst they have
           | accelerated the issue rather than caused it.
           | 
           | > Airbnb are, in fact, in control of their own morality.
           | 
           | Not entirely, they are a publicly listed company and will get
           | sued if they do anything that will hurt the stock price.
        
           | kelnos wrote:
           | Oh please. NIMBYs ruined home ownership. Airbnb certainly
           | hasn't had zero contribution to higher home prices, but
           | abolishing short-term rentals hasn't fixed affordability
           | issues anywhere it's been done.
        
           | eddd-ddde wrote:
           | Honestly I'm not convinced when an airbnb is cheaper to me
           | than renting some other place. It even includes furniture!
        
         | Joel_Mckay wrote:
         | Sure, but if someone started running heavy industrial concrete
         | equipment in a residential zoned block 24/7, than the city
         | wouldn't be blaming poor people for the issues.
         | 
         | The fact is you can go to travel websites, and the first 70k
         | listings in some cities are for commercial hotel/share services
         | running out of residential zoned homes.
         | 
         | Low-income people are easier to squeeze, and "with a computer"
         | convenience doesn't make it an ethical securitization model. =3
        
         | fire_lake wrote:
         | AirBnB has been shown to raise residential house prices.
         | 
         | It's not the only factor, or even the biggest, but still...
        
           | kelnos wrote:
           | > _It's not the only factor, or even the biggest, but
           | still..._
           | 
           | But that's the key, really. In most places, banning short-
           | term rentals will not move the needle on housing
           | affordability.
           | 
           | It's like trying to optimize the thing that's causing 3% of
           | the slowdown when things that are responsible for 40%, 30%,
           | and 25% are right there, staring you in the face.
        
         | nonameiguess wrote:
         | When I read stuff like this, I'm left wondering if I'm the only
         | person who actually lives in a place that has been infested
         | with Airbnb. On paper, my neighborhood is the Hacker News
         | dreamland. Nobody has a yard. There is train service. Many
         | people don't have cars. There is no mandatory parking
         | allowance. There is no zoning restriction against multifamily
         | housing. Virtually every unit is at least attached. Multi-use
         | is fine. Plenty of buildings contain both housing and
         | businesses. There isn't a lot of traffic. It's walkable. The
         | only major restriction is you can't build higher than five
         | stories. And we've been in a construction boom for nearly a
         | decade.
         | 
         | But much of that boom has been tearing _down_ multifamily
         | apartment complexes and replacing them with luxury townhouses
         | and condos instead. Almost nobody is actually moving into those
         | places. They 're 90% being purchased by investors, mostly out
         | of state investors, to be used as Airbnbs. There is a
         | significant categorical difference between investment property
         | today and investment property before Airbnb. Before Airbnb, you
         | rented via long-term leases, or you bought hotels and
         | apartments in really shitty neighborhoods to use as weekly or
         | even daily rentals for homeless people with jobs. Now you can
         | buy as little as a single unit and the infrastructure to rent
         | it out daily as a hotel room to much wealthier travelers exists
         | without you needing to do anything extra.
         | 
         | With predictable results. Even in neighorhoods with little to
         | no zoning restrictions, with virtually nonstop construction of
         | new housing, almost nobody lives here, the neighborhood is
         | completely hollowed out, and all of these new luxury homes are
         | mostly party houses used by rich college students and
         | bachelorette parties.
        
           | jovial_cavalier wrote:
           | That should drive your property value down, not up.
        
             | g-b-r wrote:
             | Not until there are so many short-term rentals that they
             | aren't profitable anymore
        
         | FooBarBizBazz wrote:
         | If anything, there is a housing cartel that we need an Uber-
         | like blitz (times a million) to destroy. In the same way that
         | Uber ignored local taxi regulations, you would need to ignore
         | local zoning regulations. Just "build, baby, build", become
         | valuable, and then, with your fait-accompli in hand, bribe the
         | various local governments -- just like Uber.
         | 
         | Except -- if it took the combined might of Uber's VCs, and the
         | disposable human battering ram that was Travis Kalanick, just
         | to disrupt the puny little taxi industry, imagine what it would
         | take to change housing. Ain't never gonna happen.
        
       | daxfohl wrote:
       | Given that we've been throwing cash at every conceivable idea for
       | the last ten plus years, yet when speaking of unicorns we still
       | have to refer back to airbnb and uber, seems like we're well past
       | "peak unicorn" and well into the "horse with a mild concussion"
       | era.
        
         | Terr_ wrote:
         | It's also disconcerting how much their success seems to hinge
         | on using technology as a lever to break laws or social
         | expectations, as opposed to technology as something that
         | _itself_ empowers humans to be more productive.
        
           | robertlagrant wrote:
           | Er no, they totally transformed things through technology as
           | well. Their product was fantastic. Hail a cab in the 2000s in
           | the UK and tell me Uber had no improvement for its customers.
        
             | daxfohl wrote:
             | I understand GP's point, but to yours I'll add they have
             | also open sourced and mainstreamed some of their key
             | technologies. So it's not all bad.
        
               | adamc wrote:
               | Not all bad != good.
        
             | CPLX wrote:
             | Right but how much of this improvement came from the
             | invention and popularity of smartphones and how much of the
             | innovation came from a company called Uber.
        
               | ahmeneeroe-v2 wrote:
               | Struggling to see the relevance of this question. _How
               | much of Uber 's "innovation" was actually Ford/GM/Toyota
               | innovation in car manufacturing?_
        
               | labster wrote:
               | But those car companies are just riding on the coattails
               | of Exxon, Chevron and the like with their improvements in
               | oil discovery and hydraulic fracking.
        
           | CalRobert wrote:
           | Getting a taxi in my college town in 2005 was agony. Make a
           | phone call from a loud bar and shout at some guy who can
           | barely tell what you're saying that you want a taxi and then
           | maybe if you're lucky they show up in an hour and cost 3
           | times as much as you expected (and that's on a good night!)
           | vs. "press a button, get a ride" (and have a feedback
           | mechanism for horrible drivers or gross cars, etc.).
           | 
           | Uber has issues but honestly it's night and day compared to
           | what taxis were like. And they decrease DUI's.
        
             | Terr_ wrote:
             | Sure, but there's a difference between " _that_ kind of
             | success " and " _any_ success ". To illustrate, imagine an
             | alternate timeline with a company called "Rebu", which
             | provides all the same phone-apps and servers and whatnot
             | for thousands of taxi-services across the world to adopt,
             | replacing their shitty old "computerized dispatch" systems.
             | 
             | Do you believe Rebu could that have managed to draw the
             | same level of venture-capitalist money and unicorn-ness and
             | hype, even sharing the same core technologies, code, and
             | product features?
             | 
             | I don't think it would, and I'm asserting that comes from
             | business-plans, labor relations, legal challenges,
             | government lobbying, investor marketing, etc., which in
             | several cases have been, er, ethically-problematic.
        
               | tristor wrote:
               | You're right, but you're treating that as a net-negative.
               | The reality is that the government regulations structured
               | taxi services in most cities in the world into cartels
               | that operated in a way that was to the detriment of their
               | customers. Uber broke the taxi cartel, and yes, it broke
               | the law to do it, but it wouldn't have been possible to
               | do this way if they'd tried to work with the existing
               | taxi companies, because their anti-customer cancer would
               | have infected Uber while it was young and before it could
               | even scale. Part of their value proposition is their
               | scale, itself.
        
               | deltarholamda wrote:
               | Services like Uber and AirBnB have also introduced a
               | concept through technology that was previously almost
               | unheard of in the private sector: a nationwide blacklist.
               | 
               | Bob Smith annoyed enough Uber drivers in Milwaukee that
               | now he can't get a ride in Poughkeepsie. Maybe that's
               | valid, maybe it's not. But it is pretty new, and I doubt
               | it was in the slide deck when Uber hit up the VCs.
               | 
               | The social aspect of these sorts of things can't help but
               | get entangled with the politics of social mores. Maybe
               | Bob was giving the Uber drivers wet willies. A lot of
               | people would think he caught that ban fairly. Maybe Bob
               | was too politically incorrect for the Uber drivers. Not
               | quite so sure he deserves to be sentenced to hoof it
               | until the Sun burns out. How do we know the bans are of
               | the fair former and not the latter? We don't. It's a
               | private company, they can be as opaque about this as they
               | want.
               | 
               | Good, bad, who knows, but it certainly makes for a
               | completely different landscape.
        
               | kelnos wrote:
               | I agree that this sort of thing is a problem, but it's
               | not a fundamental problem with the existence of these
               | services. It's just a problem to be solved, perhaps
               | through legislation on how suspensions and bans are
               | allowed to work, and how people ought to be able to
               | appeal them.
               | 
               | The legacy taxi services had this problem too, though, as
               | you note, not on a global level. Pre-Uber, there was one
               | taxi service that stopped taking my calls. I have no idea
               | why. I had no way to appeal this, or to even get in touch
               | with them to find out what was going on.
               | 
               | In the meantime, Bob still probably has public transit or
               | local old-school taxi services to fall back on (which
               | somehow still exist). Many areas even have local ride-
               | hailing apps. Worst-case, Bob will have to rent a car
               | when visiting other cities.
        
               | kelnos wrote:
               | I think you're missing a key bit: taxi companies weren't
               | interested in this sort of thing. In most municipalities,
               | taxi service was a protected, government-granted
               | monopoly. The reason taxi service was always so bad was
               | because there was no competition, and no incentive to
               | improve.
               | 
               | So why would they bother to adopt "Rebu"? It's nothing
               | but downsides: their taxi drivers have to work harder,
               | have to be more polite and drive more safely, have to
               | have cleaner cars, and have to be more accountable in
               | general. Not to mention of course Rebu is going to take a
               | cut of all rides booked on their platform.
               | 
               | There was no way to make regular taxi service better
               | without structural and legal reform that the incumbents
               | did not want. The only way to fix it was to go outside
               | the system and do something sketchy. And it worked! For
               | all their issues and controversies, the ride-hailing app
               | experience is _amazing_ , especially when compared to
               | old-school taxi service. Some legacy taxi services have
               | stepped up and improved a bunch since then, and others
               | have just faded into obscurity.
        
               | taberiand wrote:
               | I think the difference between the hypothetical Rebu and
               | Uber is one wants to fix the system, and one wants to be
               | the system. The Taxis had to be disrupted, but Uber
               | doesn't flinch at being just as bad wherever they can get
               | away with it
        
               | arthurjj wrote:
               | I'm confused to the argument you're making as some of
               | those are clearly ethically-problematic for Uber while
               | legal challenges, government lobbying seems core to the
               | business.
               | 
               | The taxi market, in the US at least, was a textbook case
               | of regulatory capture to stifle competition. Google "taxi
               | medallion prices nyc" for an example. Uber was clearly
               | the 'good guy' in flouting those laws and later getting
               | them repealed. The cartels that controlled the medallions
               | had no interest in improving the technology until they
               | had competition.
        
             | arccy wrote:
             | this is still the experience in less developed places like
             | italy
        
               | macro-b wrote:
               | It's more about regulations rather than development. It's
               | forbidden here, so taxi drivers can still make a good
               | living rather than subsidizing a billion dollar company
        
             | ToucanLoucan wrote:
             | It's a better experience for sure, and that's why they got
             | the viral start that gave them the opportunity to eat the
             | world, but presenting that as "worth it" seems pretty
             | dubious considering:
             | 
             | - Tons and tons of users buying vehicles they can barely
             | afford to drive for them
             | 
             | - Tons of restaurants already struggling to get by saddled
             | with needing an iPad or two at their counter to intercept
             | online orders, and needing to charge more and anger
             | customers just to break even on the fees
             | 
             | - Huge amounts of sexual assaults because Uber didn't vet
             | drivers
             | 
             | And lest we leave it merely implied: Uber is worth what
             | Uber is worth because it's a taxi company that owns no
             | Taxis and pays no taxi drivers a proper wage. That's why
             | it's a billion dollar unicorn. Same as AirBNB is a hotel
             | chain that owns no hotels, UberEats/Doordash are food
             | delivery services that don't own restaurants, Instacart is
             | a grocery chain that doesn't own grocery stores.
             | 
             | Honestly if you want to really be cynical about it, the
             | true path to finding the next tech unicorn is figuring out
             | how to be a $business that owns none of what a $business
             | normally does, and hires no employees that $business
             | usually does, and then wrap that up in an app, and convince
             | poor people to do the work for you because they have no
             | other options. Boom, unicorn.
             | 
             | The way taxi companies had languished in obsolescence was
             | definitely a problem, but I struggle to consider if Uber
             | was the best way to solve that on any front.
        
               | PaulDavisThe1st wrote:
               | Lots has been written about how way too much contemporary
               | US business is about value _extraction_ not value
               | _creation_.
               | 
               | Put differently, a common business model in late 20th
               | century and early 21st century US capitalism is to find a
               | transaction that is already happening "at scale" and
               | figure out how to insert your own company into the
               | transaction and extract some percentage of the value.
               | 
               | The primary way of accomplishing this is to create a
               | (new) story to tell about the value you claim you are
               | adding to the transaction ("it's so easy", "we have an
               | app for that", "so much quicker") even though in many
               | cases nobody (or very few people) were asking for
               | whatever you bring to it.
               | 
               | This does not mean that there is no value added. What
               | these companies do _not_ represent are new transactions:
               | no new products, no new macro-scale services ( "but you
               | get a car with your phone now!" still boils down to
               | "someone will drive you where you want to go").
        
           | ahmeneeroe-v2 wrote:
           | Pretty hard for me to lament laws being broken when the laws
           | boil down to "you're not allowed to compete with this
           | monopoly".
        
             | sgdfhijfgsdfgds wrote:
             | Do you lament e.g. Uber knowingly breaking laws, and then
             | in the knowledge that they are knowingly breaking laws and
             | under scrutiny for doing so, also actively building
             | functionality into their systems that helps them criminally
             | evade scrutiny?
             | 
             | https://www.theguardian.com/news/2022/jul/10/uber-files-
             | leak...
             | 
             | https://www.nytimes.com/2017/03/03/technology/uber-
             | greyball-...
             | 
             | This is a level of deliberate, optional fraud that goes a
             | step beyond, is it not? It's organised crime.
        
               | ahmeneeroe-v2 wrote:
               | No, I don't care about that at all. Why do you care?
               | 
               | Someone, generations ago, made a law saying people in
               | your town could only solicit car rides if they paid a
               | special tax, and now you're out here vigorously defending
               | that dead model.
               | 
               | State-enforced monopolies are often legalized corruption.
               | I care more about that than some corporation using their
               | resources to break that corruption.
        
               | sgdfhijfgsdfgds wrote:
               | > and now you're out here vigorously defending that dead
               | model.
               | 
               | This is a bit of projection. But good for you, being open
               | about your support for fraud :-)
        
               | TimTheTinker wrote:
               | > Why do you care?
               | 
               | Not OP, but I believe in the rule of law, and in a
               | republic governed by elected officials.
               | 
               | It's not OK for powerful actors, especially companies,
               | billionaires, and government officials, to willingly and
               | knowingly break the law.
        
               | ahmeneeroe-v2 wrote:
               | Thank you. I do generally agree with you.
               | 
               | In this particular example with Uber, I see "powerful
               | actors" many decades ago breaking our social contract by
               | using the force of the government to implement a monopoly
               | for their own profit and everyone else's expense. Legal,
               | yes, in the strictest sense of the word, but certainly
               | against what I value about my particular republic (USA).
               | 
               | So Uber here is more "the enemy of my enemy is my friend"
               | than a company I actually admire.
        
               | PaulDavisThe1st wrote:
               | > Someone, generations ago, made a law saying people in
               | your town could only solicit car rides if they paid a
               | special tax, and now you're out here vigorously defending
               | that dead model.
               | 
               | Congratulations on a text book case of Chesterton's Fence
               | [0]. You've mischaracterized the purpose and nature of
               | the law.
               | 
               | 1. we have cars, we have people willing to drive them
               | around to take people places
               | 
               | 2. we want some regulation of this new business/service,
               | to make things safer for the riders
               | 
               | 3. we want some regulation of this new business/service
               | because otherwise competition will force the price so low
               | that nobody can make a living offering to do this (and we
               | consider the service valuable).
               | 
               | So, we introduce a scheme which says you have pay for a
               | license in order to provide this service. This creates
               | driver identity and "responsibility" which we want for
               | riders. We limit the number of licenses so that we do not
               | have too many drivers chasing too few riders, and thus
               | offering a more reliable income to the drivers, ensuring
               | that the service remains available.
               | 
               | [ time passes ]
               | 
               | Uber introduces a scheme in which there is almost no
               | floor to what drivers might be paid, but manages to tell
               | a story that convinces enough people that they could make
               | a living or at least a significant amount of extra cash
               | by driving without the required license. Uber also
               | assures riders that even though there is no official
               | license, their technology can provide the driver
               | identity/responsibility that it offered.
               | 
               | Result: better ride hailing for riders, money for Uber,
               | and a steady, constant turnover of drivers "just giving
               | it a try because I heard you can do really well ..."
               | 
               | As usual, a mixture of pros and cons, which vary
               | depending on which perspective you are taking and your
               | moral/political philosophy.
        
               | cyberax wrote:
               | Eh. If they break laws to bust the monopolies, more power
               | to them.
        
               | sgdfhijfgsdfgds wrote:
               | I do so love the HN culture that laws are for little
               | people.
        
               | kelnos wrote:
               | Uber _was_ the little person when they started out,
               | busting those monopolies.
               | 
               | They should absolutely be held to a higher standard
               | today, now that they are more or less one of those
               | monopolies.
        
               | kelnos wrote:
               | Sure, that's bad. But that has nothing to do with the
               | fact of their existence.
               | 
               | Laws aren't universally good. Some laws are bought and
               | paid for by special interests. Some regulations are the
               | result of regulatory capture. I am totally fine with
               | people or companies skirting our outright breaking those
               | laws in order to make things better for people.
               | 
               | But yes, Uber also did some bad things that I don't agree
               | with. I still think Uber has been a new positive for my
               | life, and I'm happy they exist.
        
               | jgraettinger1 wrote:
               | One labeling is "organised crime".
               | 
               | Another is: civil disobedience with a profit motive.
        
           | agumonkey wrote:
           | it was social cocaine, a lot of shiny results that made a lot
           | of people high on numbers and progress fantasy
           | 
           | old is new, 2.0
        
           | kelnos wrote:
           | I'm not sure if this counts as being "empowered to be more
           | productive", but both Airbnb and Uber are (to me, at least)
           | _still_ miles ahead of what were the only options pre-Airbnb
           | and pre-Uber.
           | 
           | The hotel experience of course was (and is) not universally
           | bad, but I still prefer an Airbnb in most cases, for most
           | trips I take. And when it comes to taxis... no thanks. Unless
           | I have foreknowledge that taxis are significantly cheaper
           | than Uber/Lyft in a place I'm visiting, I will take that
           | Uber/Lyft every single time.
           | 
           | Airbnb is certainly more fraught, given the problems for
           | communities that rampant short-term rentals can cause. And I
           | won't claim that Uber/Lyft is fair to their drivers. But I
           | don't really care if they had to break laws to get where they
           | are. Sometimes laws are wrong. Sometimes laws are the result
           | of corruption and lobbying that isn't in the interests of the
           | actual constituents. "Social expectations" is a bit of a
           | weird thing to bring up, since it's so amorphous and hard to
           | pin down. I don't think I ever had any "social expectation"
           | that people can't rent out their house or apartment for a few
           | days or a week. I don't think I ever had any "social
           | expectation" that the only way to hire a car was to call a
           | number that often doesn't pick up, and then wait 30-60
           | minutes for a car that often doesn't ever arrive.
        
             | PaulDavisThe1st wrote:
             | > And I won't claim that Uber/Lyft is fair to their
             | drivers. But I don't really care if they had to break laws
             | to get where they are.
             | 
             | "Technology and throw-caution-to-the-wind made life better
             | for me as a consumer, and I openly don't care (much) about
             | the negative impacts on communities and other individuals".
             | 
             | > Sometimes laws are wrong. Sometimes laws are the result
             | of corruption and lobbying that isn't in the interests of
             | the actual constituents.
             | 
             | Certainly. That's why we have a process to change them,
             | rather than simply ignore them.
        
         | akira2501 wrote:
         | > we've been throwing cash
         | 
         | I think you find most of the answer you want if you simply
         | examine who "we" is in this context.
         | 
         | It certainly wasn't "us."
        
         | MichaelZuo wrote:
         | That's a pretty good point.
         | 
         | Are there any, at least somewhat credible, unicorns that have
         | appeared over the last 5 years?
        
           | al_borland wrote:
           | Does OpenAI count? Founded 8 years ago, but have completely
           | blown up in the last couple years.
        
       | CM30 wrote:
       | To be honest, you could say this about capitalism in general.
       | Everything has to be huge no matter what industry it's in or what
       | the product is, just because shareholders demand that impossible
       | infinite growth.
        
         | robertlagrant wrote:
         | It's not capitalism. It's government bonds. If you can get a
         | guaranteed return from bonds, then any risk must beat the bond
         | market. That increases the cost of capital for businesses, so
         | they have to produce greater returns.
        
         | vladms wrote:
         | Human nature in most big culture seems to be trained to demand
         | more (even if not always money). If there was any group of
         | people that were "content with what they had", they were
         | outpaced in development by the ones that "want more" so there
         | will be minor (or inexistent) now.
         | 
         | I do wonder if there is any smart solution to this issue.
        
       | kayo_20211030 wrote:
       | Any advance, early industrial revolution; late nineteenth century
       | industrialization; twentieth century vertical integration;
       | globalization; internet disintermediation etc. will cause some
       | dislocation. Often unintended, and rarely foreseen. Ultimately it
       | all settles down to a new equilibrium, until the next
       | perturbation. It's a bit disingenuous blaming VC's, or scale, or
       | anything exogenous. The system's capacity for change will always
       | outstrip the current institutions' abilities to fully buffer the
       | change. If we focused on improving the institutions responsible
       | for that function we'd be performing a more useful function than
       | trying to limit the change.
        
       | elevatedastalt wrote:
       | I misread the title as "Scala Ruins Everything" and was very
       | confused by the comments.
        
         | jelling wrote:
         | So did I and having chosen it once, I still thought "well, I'll
         | hear this out..."
        
       | tantalor wrote:
       | I'm halfway through reading this and still not discovered what
       | the point is.
        
       | rKarpinski wrote:
       | Odd piece. It highlights some hyper-scalers but it needs to work
       | on justifying 'how they ruin everything'.
       | 
       | "At scale, they would ruin communities, put restaurants out of
       | business, destroy the dream of home ownership, and eventually
       | undermine democracy itself."
       | 
       | Uh what now?
        
         | jaggederest wrote:
         | airbnb, doordash, airbnb, facebook - did those things,
         | respectively, with plenty of hard evidence (does anyone still
         | remember cambridge analytica)
        
       | adamc wrote:
       | One of the questions all this raises for me is: what fraction of
       | successful startups actually make society better?
       | 
       | I'm sure to get pushback here, but my suspicion is: most do not.
       | Looking at companies like Facebook, Amazon, or Google, I'm kind
       | of think they made it worse. Yeah, I know, some people benefited.
       | But net-net, I preferred having more and better bookstores to
       | Amazon. I don't like what google has become at all. And Facebook
       | has never been good.
        
       | dash2 wrote:
       | I like Airbnb, because it's made staying abroad much cheaper and
       | nicer. I also like being able to rent a taxi on an app in a new
       | town.
        
         | sausagefeet wrote:
         | For awhile I'd been using AirBnb by reflex, but after a few
         | pretty bad experiences I started indexing it against local
         | hotels before committing, and my experience has been that if
         | you just need a place to be (don't care about kitchen) then
         | AirBnB is not nearly as competitive as it used to be. So yes,
         | AirBnB has made staying places cheaper, but the industry is
         | also catching up. Concrete example is nightly rate for a studio
         | in Paris vs the hotel next to it were +/- euros difference when
         | I was there last year.
        
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