Why did the subsidy for the “millennial” class end?

Has the end of the subsidized era arrived? Is the decade of instant and cheap services fading away? Why did the subsidy for the “millennial” class end?

By Julius Lopez

08/26/2022 – 10:30 a.m.

Did you know that 95% of technological projects end up in the trash and only 5% crown success and that this “success” does not include in many cases giving Profits?

Most of the Applications that you use at the moment are deficit, throw losses What are they covered by investment funds that are behind.

a luck of technological populism with private money. In case he hasn’t figured it out yet, just read a story published in The Atlantic where he describes the course of young Derek who went to ask for a Uber like he always did. For just doing 2 miles, the app calculated $50. The young man thought he had the wrong street or perhaps the wrong state, but that was the rate. That same trip used to cost him less than 25 dollars. So what happened here?

There was an investment fund that subsidized the other 25 while they gained market by destroying the business of their natural competitors (taxis and remises) by putting a rate below cost.

And now the subsidy to millennials is ending: the cruel struggle of these groups not to fall into digital indigence

Now the subsidy ended and the fee is not only covering the cost but there is also a margin for profit. Just in this last four-month period Uber showed profits.

As you read: Uber was in deficit until minutes before.

But now, there are no more taxis or remises, and Derek has to pay full fare.

The interest rate increase by the US government sucked up the money that before with a negative rate ended up in these technological bets.

In these atypical times, the interest rate turned out to be a conservative but effective investment.

The era of cheap money for tech companies is over.

A young American man sleeping on a mattress Casper, use the fixed techno bike platoonorder lunch at dash door, travel in Uber to work at his office We work and come back in Lyft, used all these companies that only in the last fiscal year between all together lost 15 billion dollars. That amount went directly to subsidize these products.

The era of cheap money for tech companies is over.

After rain, wet

combiner, one of the largest venture capital (investors) in the world, which funded AIRBNB and Dropbox among others, sent a letter to all the CEOs of its investments informing them that “The best move is to prepare for the worst.”

They further added that adjust your plans because maybe these are the latest investment rounds in which they can raise money and that those who lose may no longer be in “the photo”

The CEO of Uber added one more sentence to this storm: “before we continue expanding, we are going to be more profitable

In the United States, the problem is exacerbated by the recomposition of wages of lesser value. So there are fewer people “doing Uber” or selling their free time to these applications. So the lack of driving force makes technologies should pay more to “their partners” for them to pedal or take trips.

The cuts and forecasts for a recession leave a bleeding of layoffs not only in the Opening but also in the unicorns what they stopped hiring people and concentrate on rushing profits:

  • Tesla: 200 autopilot engineers were removed
  • Tik Tok: +50 layoffs in his North American troop
  • currency basis: +1000 fired almost 18% of his troops
  • Netflix: +450 people in the last 2 months
  • Shopify: 10% of his troops were fired
  • Robin Hood: the popular finance app laid off 1 in 3 workers.

all that injected money for the risk capital in the pocket of millennials to adopt their products will no longer be availablethus attacking a rhythm of life that seems to have exploded like the dotcom bubble for him 2001.

Millennials and startups: will they burst like the dotcom bubble of 2001?

The three era of internet

  • Before 1999: In the beginning, the services carried over the internet were free due to the little faith that was had in this technology. It was the age of disbelief.
  • bubble 2001: With some liquid money provided by the advertising business and catapulting when charging technology began to take its first steps and showed signs of growth, it was when the bubble began to inflate until it burst in 2001.
  • After 2001: The projects that survived the bubble, along with a new breed of startups, lived until a few minutes ago expanding at a subsidized loss. This era has just ended.

Now and without competition nor the publicity, will be able to compensate these rises. The end of the subsidized era has arrivedthe decade of instant and cheap services is fading away. The subsidy to the “millennial” class is over.

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