A few weeks ago I read a very interesting article in the Atlantic that talked about a slue of new age digital companies that are changing the way we live while subsidizing a new found life style. These are companies like Uber, Blue Apron, Post-mates, Wag, Amazon, etc that are passing along digital services that cost more to deliver than they are charging. As such, there is an inherent lifestyle subsidization that consumers are benefiting from.
Some new companies are going as far as paying customers for action. Fore example, the new app Seated is actually paying customers in gift cards for dining at their partner restaurants. Imagine that, a restaurant paying diners 25% in Amazon gift cards for booking a reservation. It is a new age way to target an urban, affluent consumer that is obsessed with deals, speed and convenience. In years past, if I wanted to attract affluent millenials in the lower east side, I might run an ad through google maps, yelp, and social media platforms. Now, with apps like Seated, I may have to pay 20-30% in discounts to get the attention of the same group.
The conclusion of the article is that these subsidies, and their associated unprofitable business models, have an expiration date. To maintain the speed and conveniences we have come to expect, there is an unavoidable price increase coming. The services and technologies we have come to enjoy are here to stay but the prices are bound to be fleeting.
https://www.theatlantic.com/ideas/archive/2019/10/say-goodbye-millennial-urban-lifestyle/599839/
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