Nothing wrong with it--whatever that term has come to mean exactly. But, as many SV companies have found out over the years as VC subsidies have dried up, there are a ton of services people want but only so much money most people will pay for them.

Pick up and drop off laundry? Sign me up! For $50? Umm. Maybe I'll pass.

Of course you see this effect where middle class people in developing countries have far more full-time help than all but the wealthiest do in the US and Western Europe.

I suspect that in the coming years, we'll see far more self-service, automation, and some services that are pretty commonplace today becoming much more of a luxury.

If the value of their production exceeds the living wage, nothing. If it doesn't, there's nothing the company can do but pay less than the living wage or fire the employee.