Burn a billion dollars. Artificially pump the market value of your company by 10 billion dollars. Pizza company gets a few hundred dollars for free. "Haha, we pulled one over on the man!" Go public or sell. Founders and initial investors (likely already wealthy) get billions. Other people take the hit.
No, this does not distribute wealth down. It's a ploy to gin up enough excitement that people who are already wealthy can expand that wealth dramatically with weak business offerings while leaving other people (smaller investors, employees, customers, other businesses, the government, the public at large) to hold the bag.
Not every start-up is like this, but a lot of 'em sure are!
Who the hell cares? When I pay for things I have no interest in thinking about where things are trickling or not. If ten years later DoorDash/other delivery services still have people willing to pay for the service and people willing to deliver the orders for what they are being paid, then the business seems reasonably viable to me.
No, this does not distribute wealth down. It's a ploy to gin up enough excitement that people who are already wealthy can expand that wealth dramatically with weak business offerings while leaving other people (smaller investors, employees, customers, other businesses, the government, the public at large) to hold the bag.
Not every start-up is like this, but a lot of 'em sure are!