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by pconner 3199 days ago
It's honestly impressive how tech people continue to exhibit a complete lack of social awareness. This is a product no one asked for (NYers actually enjoy bodegas as they are), and the PR seems to be blatantly pro-gentrification (i.e. getting rid of one of the few viable business opportunities for lower-class immigrants is spun as a good thing).
1 comments

If that's true, they'll fail. What I worry about in regards to businesses like this is cream-skimming.

For example: these bodega guys sell the most popular items at higher margin; those items drove additional foot traffic into the bodega who then bought the next tier of items. Or someone needed the next tier and picked up the more impulse items while there. Once the cream has been skimmed, the economic model of the bodega is no longer available, so the shops vanish, which inconveniences everyone.

This is the Uber model too: pick off the wealthier passengers, leave the dregs to taxis who are required by law to pick everyone up.

This model has destroyed dry cleaners in SF; as a bonus the dry cleaning startup failed as well, but by that time the damage was done.

It's capitalism, sure, and in case you're wondering I'm not advocating for regulation to prevent innovation. But personally I try to avoid these cream-skimming businesses even though I am in the "cream" demographic.

> It's capitalism, sure, and in case you're wondering I'm not advocating for regulation to prevent innovation.

Capitalism doesn't require regulation to prevent innovation. It requires regulation to prevent exactly this from happening: Large anomalous but short-lived ventures killing small-scale existing markets.