Financing for on-demand companies drops off
There may be a little bit of trouble brewing in the on-demand economy that’s the term dozens of apps and services that have sprung up to grocery shop for you bring you takeout from local restaurants or just 7/11.
Park your car and then bring it to you at the end of the day gas up your car while it’s parked and deliver anything to you, anytime, anywhere.
CB Insights reports that financing for on-demand companies has dropped off dramatically in recent months.
Instacart, the startup that will shop for you and then deliver groceries has announced changes in the way it pays its shoppers. Spoiler: some will make less money.
In the city of Minneapolis, Instacart said it’s going to fire all its drivers and basically close up shop.
This is a big development in the tech world, since investors poured almost 18 billion dollars into funding the type of companies. Even Amazon is struggling with how to make delivery cost-effective.
There is a price for convenience, it just looks like that price might be jobs, startups and investor returns.
Guess I’m doing my own grocery shopping. Womp womp.
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