the chief
Message from
Have you noticed how there is something of a revolution
occurring in the way we buy certain services and do business
with each other? The rise of Uber, Airbnb, eBay, Rideshare,
JustPark and other similar businesses reveals a trend for people
wishing to offer services to each other without expensive set
up costs, and without necessarily committing to prolonged
involvement in the business or service.
Take Airbnb for example. Any of us can
offer our spare room, or even our entire
house, for short term rent by others,
for which we can charge a reasonable
rate for the night (or week) simply
by registering on the Airbnb website
and of course actually having the
accommodation to offer.
With JustPark, if you need a parking
space in a busy area, perhaps near
your favourite sporting venue, you can
search the website or app for a place on
someone’s driveway, pay the fee, and
park there.
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Of course, the biggest winners in all
of this are the companies running
the websites, making small amounts
of commission from every deal for
doing…...well, very little, if they have the
software set up correctly. The volumes
of transactions, and therefore the fees
generated for such companies, are
impressive, given that they own no cars,
property, driveways, etc themselves. It
is estimated that the value of Airbnb is
now in excess of $10 billion – not bad for
a company that only began less than 8
years ago. Uber’s revenue is also around
$10 billion but projected to be $26 billion
next year if their phenomenal growth
continues.
If we ask what is creating this need for a
new way of booking accommodation or
a ride in a car, I think the answer is that
it’s partly about ease of use (a few clicks
to make a booking) but also partly about
the satisfaction of feeling as though you
are spending your money with ordinary
people, trying to get by. It may be that it
feels more personal, not just a faceless
large institution receiving the benefit
when you sleep in someone’s own bed. It
may be that it’s about the price, because
it has to be said that the charges are
sometimes so low, it’s hard to see how
the ordinary individual delivering the
service makes any money at all. I heard
recently about a food delivery service
that will deliver from most restaurants to
your home for much less than the cost
of a pint of beer. It’s hard to see how the
delivery driver can be making enough to
keep his/her bike on the road.
But what is the relevance of all of this to
legal services?