[electricviolet]

MLM companies continue to be popular, despite the fact that the majority of people lose money by participating.

I agree that portions of the left can be paternalistic sometimes, but that doesn't mean Uber and Lyft aren't exploitative.

[ericsoderstrom]

I think MLM is different. A small number of people might make a lot of money, funded by the losses of most of the rest. In that respect its more like gambling, and people can be more easily fooled to think that they'll be one of the lucky few.

Working as a driver for uber/lyft isn't really like that at all. You know approximately how much you can stand to make per hour. There isn't a small pool of drivers somehow making tons of money at the expense of the rest. Being a driver isn't predicated on mistakenly calculating your odds of winning big.

[the-dude]

> A small number of people might make a lot of money, funded by the losses of most of the rest

Sounds like Uber to me.

[ericsoderstrom]

Not sure what you mean. Are you saying later round investors in Uber are funding profits for early round investors? I could see some tech investment structures as possibly resembling MLM due to winner-take-all effects and outsized profits going to the earliest investors. Though this isn't a property specific to Uber

[electricviolet]

> Being a driver isn't predicated on mistakenly calculating your odds of winning big

Not exactly, but there are parallels. Most drivers don't take into account the costs of wear and tear on their cars, which can be significant, and Uber isn't transparent about how drivers should anticipate those costs. So part of your wages as a driver are essentially borrowing against the future value of your car. And it can take years before the wear and tear becomes apparent, so many current drivers may not have run up against that reality yet.