Gig Economy: The Money Sinkholes Investors Can’t Resist

Uber, Lyft, Doordash, Delivery Hero, Grab – you’ve used them or at least heard of them. They’ve raised an enormous amount of capital but are still reporting losses. What's going on? 

In this video, we dissect the business models and finances of these gig economy companies to understand why they are still struggling to make profits.

What is the settlement-gap?

The settlement gap - the delay between a payment being made and it reaching its destination, or, put simply, the inability of a platform to facilitate instant payouts is a real problem for the gig-economy. Cash-in-hand transactions are a major factor in trade services. Without the ability to digitally replicate them, gig-economy platforms do not necessarily add enough value and incentive to ensure loyalty from their users.

Read more HERE.