The Procrustean Bed Revisited: Ways to Scale 'Physical Service' Platforms

In March 2016, much to the consternation of the investment community, The New York Times declared “the end of the on-demand dream”, stating, “across a variety of on-demand apps, prices are rising, service is declining, business models are shifting, and in some cases, companies are closing down”.1 The debate on the future of the on-demand gig economy has continued since, particularly focusing on the platforms which drive it, the feasibility of their extensions, and the justification of their valuations. By 2019, a study of 250 platform companies over the past two decades reported that more than 80 percent of them had failed, with their average lifespan edging five years and many collapsing by their third year due to a lack of users or funding, or both.