This week, we talk about Protector, an innovative private security app seeking to streamline the security hiring process by replacing traditional agency methods and unclear pricing with a transparent, on-demand marketplace.
Great post! It reminded me of Sekar and Siddiq (2023), which specifically models this issue, examining the role of information and how different pricing policies can influence platform dynamics.
In developing countries like Mexico, ‘cash is king,’ and taxes play a crucial role in whether gig workers feel confident enough to integrate into the formal economy. Outside of the more developed cities, trust is the most important ingredient for the adoption of these services. Additionally, digital platforms can no longer rely solely on advanced technology; they must generate incentives to build trust among users, gig workers, and companies willing to participate in the gig econom
You make a ton of incredibly strong points. My wife and I did a similar thing with rover and our dog walker.
Yet, I think there is a very viable path for gig companies like this. You mention the idea of introducers, which is exactly what job sites like Indeed are. Theoretically as people build their networks, both employers and employees should not have a need for job sites. They still exist so the theory doesn't hold up. The path to a sustainable business may not look like a gig platform, but it does exist.
Even for being a gig platform, there may be some viable paths. Rover provides insurance and insurance pricing is harder to negotiate when a business is small. I imagine insurance is even more complex with personal security giving protector an arbitrage opportunity. That could make them fairly profitable so long as they control their unit economics a lot better than Uber did in the past.
Great post! It reminded me of Sekar and Siddiq (2023), which specifically models this issue, examining the role of information and how different pricing policies can influence platform dynamics.
In developing countries like Mexico, ‘cash is king,’ and taxes play a crucial role in whether gig workers feel confident enough to integrate into the formal economy. Outside of the more developed cities, trust is the most important ingredient for the adoption of these services. Additionally, digital platforms can no longer rely solely on advanced technology; they must generate incentives to build trust among users, gig workers, and companies willing to participate in the gig econom
You make a ton of incredibly strong points. My wife and I did a similar thing with rover and our dog walker.
Yet, I think there is a very viable path for gig companies like this. You mention the idea of introducers, which is exactly what job sites like Indeed are. Theoretically as people build their networks, both employers and employees should not have a need for job sites. They still exist so the theory doesn't hold up. The path to a sustainable business may not look like a gig platform, but it does exist.
Even for being a gig platform, there may be some viable paths. Rover provides insurance and insurance pricing is harder to negotiate when a business is small. I imagine insurance is even more complex with personal security giving protector an arbitrage opportunity. That could make them fairly profitable so long as they control their unit economics a lot better than Uber did in the past.