I don't understand why there's so much emphasis on doing things that don't scale. Here's why: In this lecture, we heard about DoorDash, a successful delivery business that is now expanding to multiple cities. DoorDash adds value by delivering more efficiently than small businesses can on their own. An example of a small business that benefits is a Palo Alto Macaroon store. Before DoorDash, the Macaroon store took ord…
You make some good general points in your comment, but since you're holding up DoorDash as an example of success, I thought I'd point out that DoorDash is just one of a number of "on demand" companies that are currently en vogue.
In many cases, their ability to scale is heavily dependent on their ability to shift major costs (taxes, vehicle operation, commercial auto insurance, etc.) onto their workers, who they classify as independent contractors. The big question is whether the workers are actually independent contractors. This is a topic of discussion in legal circles[1] and the trend does not look favorable for many of these companies[2]. Uber is already being sued for misclassification[3] and the same attorney says she's looking at Homejoy[4].
One adverse outcome in a legal action could change the economics of these businesses significantly, and potentially even put some of them out of business.
[1] http://www.pepperlaw.com/publications_article.aspx?ArticleKe...
[2] http://www.msnbc.com/msnbc/fedex-loses-court-case-against-dr...
[4] http://www.washingtonpost.com/news/storyline/wp/2014/09/10/a...