What are we criticizing in the new business models?

The new business models are emerging and attracting many investors, especially in French start-ups, who are experiencing a craze on the international stage. Fundraisers still have higher amounts and success seems to be there. However, there are some criticisms that point to a malfunction, which may very well be real.

Companies that no longer make a profit

The number of cases of companies never making a profit, and as chain losses, which one could even say records every year, is exploding. These companies survive only thanks to the always important contribution of capital, and it sometimes seems that they have not even found a viable business model even today, decades after their launch. The logic is relatively simple: it’s the famous “Winder Take All”, in other words, the first to arrive on the market would win it all. Why could not we say to the limit by thinking the following way: inspired by good success stories that first highlighted the ability to drain users like Google or Facebook and then make money, the concept can seduce. Except that it seems like the business model never happens and one wonders if it will one day happen. Meanwhile, these companies often play with the price war against players who respect the fact of making money, and in the end, they only sell at a loss, even if it is not characterized as such. Under the pretext of reaching a zero point for which there is no end in sight, they take very low prices and lose money. Remember that loss-making sales are prohibited and that it seems reasonable that they circumvent the difficulty under the pretext of being in the service. In short, a way of doing things that is more than questionable and that could be reminiscent of anti-competitive ways of doing things.

Business models based on false entrepreneurship

If some business models are based on a real desire for independence, it is clear that the new ones are designed not to meet a desire for independence or freedom, but simply by commitment. These companies seem to be based on a more or less forced entrepreneurship to find work that looks only like a choice and that finally replaces occupations that already existed before in the form of wages, with better conditions for the benefit of this , which looks like. as exploitation. It’s just a matter of using other words and giving a semblance of freedom under the pretext of offering a service when the person performing the service clearly appears to be under the order of the company in question.

Except that the principle of a person becoming self-employed is that she generally finds herself better paid in this way than if she were not employed to cover the costs, but above all because she absorbs the majority of the income. The counterpart to this profit is generally to cover the risk.

But today, the platforms we are talking about in this article do not independently exempt from external constraints other than retrieving customers, but on the contrary impose a wide range of rules for getting customers in, which strangely enough resembles a directional force. We will think about delivery or even a large number of VTC platforms and we may wonder how they are going to evolve, although we remember that not everyone in this area is concerned.

We understand that they provide a service that can be useful and that they exist in certain cases, such as where other alternative solutions do not exist, such as carpooling for example. The latter would probably not exist without this type of platform. On the other hand, in pre-existing occupations, the question can really arise and question the destruction of jobs rather than the creation of jobs.

The lack of production of a service in itself / of products

What is starting to be criticized more and more in the last point of the new business models is that many of its business models are ultimately based on a vacuum. In other words, they do nothing in themselves except to provide service to those who perform the service. They produce none of the products, have no stock and produce none of the final service. They represent empty interfaces.

If this does not shock in the first place, it must be taken into account that today it is this type of business model that seems to make the most money and that can shock in the end, it is left to say that those who produces the service or product, captures only a residual value of the fully paid amount and not the other way around. But without those producing the product or service, the other would have no reason to exist. A phenomenon that leads to criticism that everyone can appreciate depending on the situation they are in.

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