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I may just be projecting/hoping but I couldn't help but draw a parallel between those quotes and this

http://www.buzzfeed.com/carolineodonovan/why-wyzant-cant-be-...

Geant can envision a product for homework emergencies and last-minute test prep that would be a perfect fit for the on-demand marketplace. But to make it work, he said, WyzAnt would need more control over the participating tutors than, since they’re not employees but merely contractors, he’s legally allowed to have.

Geant said he’s been aware of the business implications of labor laws, which he calls antiquated, since WyzAnt’s “early days.” It’s for that reason, for example, that WyzAnt has never published educational materials or created a curriculum for its tutors to use. To make an on-demand product work, the company would likely need tutors to work in shifts, in order to ensure that someone was always available. In addition, to provide a reliably commoditized product, WyzAnt would want to set a base price. But to do those things, Geant said, it would make more sense to hire the tutors as employees — which, given the cost of covering payroll taxes and other benefits, “would be a real setback for the business model.”

“It’s not a good position to be in, when you hesitate to do the things your customers want,” said Geant. But while hesitating in the face of so much aggressive land-grabbing by other companies is undoubtedly frustrating, with ten years in the business under his belt, he’s not interested in strategies that could put what has so far proven to be a stable business model at risk.

“We have a long-term view,” Geant said, sitting next to his suitcases, packed and waiting for the trip back to Chicago. “I know you don’t see a lot of that out here.”
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