What do we criticize in the new business models?

The new business models are on the rise and attract many investors, especially in French start-ups, which are experiencing a craze on the international scene. Fundraisers have ever higher amounts and success seems to be there. However, some points of criticism are emerging that point to a malfunction that may well be real.

Companies that no longer make a profit

The number of cases of companies that never turn a profit and that chain losses, which you could even say are recorded every year, is exploding. These companies survive only thanks to the ever-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 is the famous “Winer Take All”, in other words, the first to arrive on the market would win it all. Why couldn’t we say to the limit by thinking in the following way: inspired by good success stories, which first highlighted the ability to drain users like Google or Facebook and then make money, the concept can seduce. Except the business model never seems to happen and one wonders if it will one day. 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 break-even point to which there is no end in sight, they charge very low prices and lose money. Remember that selling at a loss is prohibited, and that it seems reasonable for them to circumvent the difficulty under the pretense of being in the service. In short, a way of doing things that is more than questionable and could be reminiscent of anti-competitive ways of proceeding.

Business models based on fake entrepreneurship

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

Except that the principle for a person who becomes self-employed is that she generally finds herself better paid 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 that we are talking about in this article do not exempt freelancers from external constraints, except for bringing in customers, but on the contrary, they impose a whole series of rules to bring in customers, which are strangely similar to a directional force. We will think about delivery or even a large number of VTC platforms and we can wonder how they intend to develop, 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 already existing professions, 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, that they do nothing in themselves except to render service to those who perform the service. They produce none of the products, have no inventory and produce none of the final service. They represent empty interfaces.

If this does not shock at first, it must be taken into account that today it is this type of business model that seems to make the most money, and which may shock in the end, is left to say that those who produce the service or product, only captures a residual value of the fully paid amount and not vice versa. But without them 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 find themselves in.

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