In this TedTalk, strategist consultant Amane Dannouri discussed the various externalities that occur when online marketplaces impact local economies. In the talk, Dannouri discusses how there are both positive and negative externalities associated with the growth of these platforms such as Uber, AirBNB and Grubhub, but ultimately, when used properly, it can greatly benefit the greater society. Dannouri discussed how traditionally, people perceive online marketplaces as a threat to local economies, especially within the small business sector that disrupt traditional business models. However, this perception is largely not the case, as new technology can streamline efficiency and provide new opportunities, particularly in emerging areas. Dannouri gave the example of a technology company called Jumia, an Amazon equivalent company in Africa that is making efforts to improve technological literacy within the continent. An example of this that really struck out to me was the company’s service of an online university that prepares people to vend on their platform and increase their business opportunities. Through this program, people have been able to build their knowledge of markets and grow from an online business to a physical storefront and is expected to add three million new jobs in Africa in the next five years. His ending message is that technology does not have to be a zero-sum game; while industries will be restructured, their greater offerings to their communities increase their quality of life and provide new opportunities that would not be there without it.

I thought this was a really interesting Tedtalk given our current state. This talk was posted just before the pandemic was in full swing, but I believe its message is incredibly relevant to the state of the global economy. Small businesses are particularly impacted by this global shutdown; larger companies with multiple locations or multiple services can offset their losses, but smaller businesses do not have these opportunities. However, partnerships with services like Grubhub or Doordash allow for companies to reach their customers at a scale they would not be able to without these services and additionally allows people who have may have lost their job due to the pandemic the opportunity to make an alternative income. While this may seem small, these technologies are allowing people to feel more connected to their local community in times of isolation. New technology will always create a degree of tension and lash-backs, however, in the long-term, technology with overall positive externalities will continue to bring prosperity across the community, and technology with overall negative externalities will fade out.