The drivers of big tech’s growth are losing momentum

This cycle ( integrating web services with mobile telephony) is more about consumer convenience and distribution of services such as AirBNB and Uber than productivity. The labor component of the service is poorly paid and stripped of income security and other standard benefits: Uber drivers don’t qualify for unemployment, disability, healthcare etc. unless they pay those very costly labor overhead expenses out of their own pocket. In other words, it isn’t just absurd IPO valuations that are suggesting this tech bubble is about to burst–the fundamentals of the business models and the deflationary impact of technology are about to reduce the cash flows and profits of tech companies.

Source: charleshughsmith.blogspot.com