Everyone says middlemen are disappearing. I don’t think this is true..
You go on Alibaba and you get your clothes produced and shipped straight from the factory.
You go on Amazon and you can download your books straight from the author.
You launch your Uber app and you’re connected straight to the driver.
Sounds about alright. No middlemen..
But do you see the pattern?
What about now…?
Alright. So here’s the thing. Here’s the pattern.
In every sentence you have ONE company name.
And these companies are the new middlemen.
It’s true that we got rid of traditional middlemen.
But they didn’t disappear. They just changed.
They were simply replaced by multi billion dollar companies.
Companies that are now holding a de-facto monopoly.
Sure, you don’t pay a commission to a local middleman any longer.
Local middlemen are mostly dead.
Instead we now all pay to one global middleman.
The new middlemen now take all the cuts from everyone all over the world.
Alibaba takes a cut from every transaction made on their platform.
Amazon takes a cut from every book an author sold on their platform.
Uber takes a cut from every Uber ride made on this planet earth.
So are middlemen really disappearing? I don’t think so.
We’re just moving towards having one single middleman for every market out there who takes all the cuts from everyone out there.
Is this a good thing? I don’t know.
I guess it depends whether you’ve invested in one of these companies..