âGo disr*pt yourselfâ is what I have to say to founders of startups like ReservationHop and Parking Monkey.
Theyâre emblematic of a compassionless new wave of self-serving startups that exploit small businesses and public infrastructure to make a buck and aid the wealthy. Letâs call these parasites #JerkTech. Itâs one thing to outcompete a big, stagnant company with new technology. Itâs another to screw over the little guys just because you can sell whatâs usually free.
So what do these tools do? ReservationHop places phony reservations at the hottest San Francisco restaurants, and then sells them for $5 or $10 a piece on its site. That makes it harder for the common man to get a reservation, since if they call the restaurant directly, theyâll find all the spots taken.
And if ReservationHop doesnât sell the spots it stole? Tough luck for the restaurant, which just had a table go empty or wasted a half hour waiting because the fake Dick Jerkson that ReservationHop put as the name on the res never showed up.
And then thereâs Monkey Parking. It lets drivers who are parked in public street parking spots auction off their space to another apesh*tter whoâs the highest bidder when they leave. And Monkey Parking takes a cut. Yes, it might reduce circling for parking that causes pollution. But itâs essentially co-opting city infrastructure and profiting by reserving it for people with smartphones. Got a flip phone? Your problem, not the monkeyâs. Plus it dangerously promotes cell phone use while driving.
Sweetch is another parking scalping app where you pay $5 to take over a spot from another user, and get $4 back for selling it off when you leave. Sweetch keeps the difference, or all of it if you donât camp out in the spot until another Sweetchbag buys it. Thankfully the city of San Francisco is fighting Sweetch and Monkey Parking with cease-and-desist orders.
All of these apps are essentially tools for scalping a public good or open resource. They donât deserve to take something thatâs supposed to be free and first-come-first-serve so they can sell it.
Donât concert ticket re-sale sites like StubHub encourage and take a cut from scalping? Yes, and Iâm not a big fan of them for that reason. If the demand for a bandâs ticket is high, theyâre the ones that should be making the mark-up, not some sleazy guy with 20 computers who bought 40 tickets the second they went on sale to turn around and flip them. But at least that guy has to bet his own money that he can resell a private commodity he bought.
There are ways to disrupt with building JerkTech. Take Uber. I donât always agree with with its aggressive execution, but the taxi industry had been content giving the people a crummy service for too long. With unreliable scheduled pick-ups, run-down cars, and road-ragey drivers talking on the phone the whole time, they were inviting someone to change things. Uber is far from perfect, but itâs giving people a better experience by updating an (albeit regulated) private industry.
If you werenât aware, San Franciscoâs tech scene already has some serious problems. Between techies belittling the homeless and women, being sexist and discriminatory in the work place, or comparing criticism of the 1% to Crystalnacht before bragging âI could buy a six-pack of Rolexesâ, the rest of the country and world is building up a decent argument for hating us.
I donât want to go all Uncle Ben on you but wielding disruptive tech does come with great responsibility. Build scalable businesses, but not by pillaging the local community. Get it straight, itâs not about âchanging the worldâ, itâs about âmaking the world a better placeâ. Or at the very least âearning money without making the world a worse placeâ. That doesnât start by prioritizing your JerkTech startup, wealth, and fame over common decency.
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