#034 The Party Is Over: Everything From Uber Rides to Airbnb Is Going To Get More Expensive

I remember my first time taking an Uber. Cool car. Smelled nice. I knew what the price would be the second I booked it and way cheaper than a taxi. Hooked.

Rented an million-dollar mansion on Airbnb in Breckenridge to ski. 3 stories. Hot tubs. Close to the slopes. Split it cheap with some friends. 

MoviePass! $10 a month to see all the movies you want! I mean, c’mon. We all knew deep down that couldn’t last, but we hoped the rest would. 

And now its over. Why?

We were living that Gucci lifestyle at Nike prices. Those companies were subsidizing their services to get you hooked, but now that they’re public, they HAVE to turn a profit and the only way to do that is raise fees and prices.

Do you know how large the graveyard is of food delivery services? Maple. Sprig. Spoonrocket. Munchery. Those are just a few who have started and died after being unable to sustain growth by getting more funding from venture capitalist firms.

Classpass was a $99 a month unlimited spin class plan. 

We went into subscription and everything as a service hyperactive mode and it was all so cheap, why bother to start asking questions if it will last? Because deep down, just like that Illenium song, Good Things Fall Apart.

The business model went like this. Build some code and an app. Make a service to-your-door or monthly accessible at a ridiculously low price. Get lots of users. Show that to venture capitalists who will give you tons of money. Make app better. Get more users. Get more money from VCs. All while, burning cash left and right and not making a profit. If lucky, get to IPO, cash out and become billionaires. 

That’s where most of the ones that have survived are now. The top members and early VCs made their money and now they have to make a profit. Turns out, raising prices is the only way to do it and they’re praying to the Wall Street gods that you’ll stick around for it the service you love so much.

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If working a 9-5 for 60 years so you can retire with a little money and die a few years later is what you want to do, then this is not the podcast for you.

Stephen is an executive coach that works with executives and entrepreneurs to build the life that they want, personally and professionally.

This podcast is about contrarian investment strategies around time, energy and money to build the 4 types of wealth and utilize lifestyle design to create the life we want. The interviews are with hi-earning individuals on how they make money so you can copy us and grow wealth too!

Reaching that first $100k milestone is crucial and then the game changes.

Learn how the wealthy view time, energy and money so you can apply these proven strategies to your life.