Uber is causing a decrease in entrepreneurial activity


The gig economy allows for many to pursue their dream jobs and entrepreneurial ventures. Those of us who rely on flexible work in order to pursue our passions, know that it can be difficult to find steady work to supplement income. Entrepreneurs often turn to resources like Kickstarter to fund their ideas while working part-time or freelancing by day. As Uber is being introduced to more and more cities an interesting trend is starting to unfold.

The advent of Uber is leading to a decrease in as much as 14% of Kickstarter campaigns that don’t reach their monetary goals. “If you think of the funding that you get on a platform like Kickstarter as being a market signal of quality, Uber seems to be playing a potentially useful role by getting entrepreneurs with lower-quality projects to drop out.” Said Shankar Vedantam, NPR’s Hidden Brain social science correspondent.

This research seems to show that Uber, and the like, may be cutting the fat by providing less successful entrepreneurs with more steady and secure means to earn a living. Audio clip below:

Image Credit: boingboing.net

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