I think taken to this logical extreme, the only conclusion you can come to is that they value having people from more expensive areas. I mean, from a business perspective, it seems insane to hire anybody from SV if you can fill your roster with equivalent people from poorer areas. Some areas are absolutely chock full of experienced developers used to working for a tenth of the salary that a SV developer can demand. So why would any rational company choose to pay up to 10 times more than they have to for workers?
I think the obvious reason is because there is more to having a high tech worker than the work they produce. Remember that Gitlabs is still a VC backed company. In addition they still have to exit sometime to pay back all those VC investors. As much as I hate to say it, a startup staffed by people from eastern Europe or south east Asia doesn't have anywhere near the cache of a startup staffed from people in SV.
Right now Gitlabs has paying customers, but it's important to understand that its bottom line could depend as much on their investors (and potential investors) than its sales. Not only that, but the buzz you generate from being a SV startup leads to other SV startups using your service.
How many companies would (very unfortunately) give Gitlab a pass if it was staffed entirely out of India? I'm extremely sorry to say that I think it would be quite a few.
So, as terrible as I think it sounds (especially as a developer who works out of rural Japan), I can completely see the value of paying more for developers from certain areas. SF, LA, New York, London, Paris and even Tokyo are just much more impressive places for your staff to live than We-don't-even-have-a-train kuso-inaka Japan.
I think the obvious reason is because there is more to having a high tech worker than the work they produce. Remember that Gitlabs is still a VC backed company. In addition they still have to exit sometime to pay back all those VC investors. As much as I hate to say it, a startup staffed by people from eastern Europe or south east Asia doesn't have anywhere near the cache of a startup staffed from people in SV.
Right now Gitlabs has paying customers, but it's important to understand that its bottom line could depend as much on their investors (and potential investors) than its sales. Not only that, but the buzz you generate from being a SV startup leads to other SV startups using your service.
How many companies would (very unfortunately) give Gitlab a pass if it was staffed entirely out of India? I'm extremely sorry to say that I think it would be quite a few.
So, as terrible as I think it sounds (especially as a developer who works out of rural Japan), I can completely see the value of paying more for developers from certain areas. SF, LA, New York, London, Paris and even Tokyo are just much more impressive places for your staff to live than We-don't-even-have-a-train kuso-inaka Japan.