Old economy woes catch up with Web 2.0 businesses

Social networking site Uber.com closed its doors yesterday after investors refused to stump up more cash to support it.

A note on the company's website reveals that existing investors are unable to continue a lifeline due to "the crisis in the economy" according to management. However, as of writing a short reprieve has been offered by Sharenow.com in order to assist the founders in finding an alternative source of income.

This comes the same month that eCirkit, a social network for "artists and thrill seekers" also shut down.

So does this indicate that social networking was a fad?

My view is that if you opened a toy shop and expected to run it as a long term business when everyone plays with the toys but no-one buys, it wouldn't work out. Why should Web 2.0 businesses have to play by different rules?

I see no signs of solid social networks like Xing closing any time soon. But you do have to wonder what the future is for sites like Twitter, where there is no operating income and where the money men they subject to the biggest cash crisis since the 1930s...

The sooner we get our premium membership level at WeCanDo.BIZ launched, the better!

Ian Hendry
CEO, WeCanDo.BIZ
http://www.wecando.biz