Google is starting to enter the professional and local services market in a new way, and this is going to have profound implications for people who provide such services. While Google has long provided advertisements for services, its new Local Service Ads platform take the company’s involvement to a new level. This is more of an Uber-style model, where Google will serve as a clearinghouse to directly connect customers with businesses. However, the way that it does so will be opaque, so it will be allowed to manipulate prices. This could result in major price pressure and lower wages for professionals.
- Google is looking to privatize most industries allowing more subcontractors to exist like uber drivers
- The services would be cheaper and everyone would make more but cutting out business owners
- The author pointed out that while we prefer this contract it kills central businesses and business owners
“Google has gotten pretty good at squeezing most of the profit out of every industry it touches via Adwords, Google Shopping, etc. And Google’s Local Service Ads look pretty much like more of the same.”