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Trouble at TaskRabbit Is Bad News for the Sharing Economy

Bloomberg Businessweek (07/09/13) Joshua Brustein

TaskRabbit, the online labor-sharing platform, experienced a round of layoffs this week. This demonstrates that, despite the popular hype around the sharing economy website, it has not been able to maintain a sustainable business, which could represent a blow to Airbnb and other sharing companies. Lack of demand is cited for the trouble, and TaskRabbit has struggled to grow beyond its early adopters. The company states it has decided to focus on its key business opportunities, including mobile, geographic expansion, business services, and marketplace operations. Its business services offering may compete with established temporary employment firms.