This is the result of reduced market competition.
Ask yourself this: if Elance and oDesk were still separate and competing with each other, do you think either site would be charging 20% fees and going up and down more than a horse on a carousel?
We all know the answer.
I can assure you all of one thing that will not be going down at all this year: Upwork's profits.
@Wendy C wrote:
I find it rather amazing that the forums continue to function ...
Forums are not managed nor hosted by Upwork. They are outsourced to a third party. This is why they are always on.
@Charles K wrote:
....I can assure you all of one thing that will not be going down at all this year: Upwork's profits.
Despite client revenues, Upwork is not profitable. It's on life support provided by venture capitalists, who dominate the board of directors. Apparently we and our clients get what they pay for, and not a penny more.
p.s. I don't remember signing the Advance Directive specifying minimization of life support, as opposed to actually working to bring the patient back to health.
"Upwork is not profitable, despite client revenues. It's on life support provided by venture capitalists, who dominate the board of directors."
If that's the case (I have no information on this one way or the other) then maybe someone actually does deserve to get canned. Given the relative lack of viable competition in this large segment and the huge volume of projects, that takes some doing.
Charles, you must have missed the CEO's admission of lack of profitability during the fee increase discussion. (The claim was that fees were not increased to raise the nonexistent profits, they were meant to stanch the loss hemorrhage in a particular segment of Upwork's market.)
As a point of comparison, Amazon has been unprofitable for most of its existence, and only fitfully profitable, quarter-by-quarter, in recent years.
DMM -- That was before my time and so yes I did miss it. Thanks for the context, it honestly does explain quite a bit and I appreciate it.
I knew about Amazon and there is indeed nothing wrong with emphasizing growth over profits .. as long as you can pull it off, of course.
If I were Upwork I would be 5 things:
- try to find a really, really powerful (in an economical sense) investor
- hire the best (and perhaps the most expensive) technical staff or outsource the whole technical infrastructure to a top class provider
- invest in the qualification of the customer service so that they provide 1st class support for clients and freelancers
- carefully select freelancers and clients (no fake, no low-ballers)
- close this community, it will we superfluous then
@Douglas Michael M wrote:Despite client revenues, Upwork is not profitable. It's on life support provided by venture capitalists, who dominate the board of directors. Apparently we and our clients get what they pay for, and not a penny more.
Which is extremely worrying on the long run.
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