6 ms·

I agree with you -- Uber succeeded for many of the same reasons. They found a weak, fragmented, and hyper localized regulatory environment (very similar to that

by exelius 10y ago

I agree with you -- Uber succeeded for many of the same reasons. They found a weak, fragmented, and hyper localized regulatory environment (very similar to that of hotels) that they could overwhelm with global scale after building up in a few "friendly" markets. I suspect Google was trying to do the same with Google Fiber, but found the opposition (in the form of AT&T / Verizon / Comcast / TWC / Charter / Cox) was too organized and entrenched.

cmurf 10y ago
I agree with the idea that there are inefficiencies, unfairnesses, externalities in the "legit" way of operating short term rentals. But there are many hotels without 24/7 customer service, where the front desk is closed after 10pm and you get to call a number with urgent needs (like plumbing failures or whatever), etc. And they are cheaper than typical hotels, as are typical bed and breakfasts as compared to the boutique b&b's. So it's completely fair to be critical of all of these inefficiencies, but I think it's wrong to suggest AirBnB has some particular innovation other than their app connection buyer and seller, and themselves evading and enabling others to evade, the level playing field. Such as it is.
- exelius 10y ago
  I think we're saying the same thing. :) I don't feel Airbnb is particularly innovative on the technology side; they're just exploiting a combination of inefficiencies in government regulatory mechanisms and the naivete of inexperienced landlords. There are plenty of horror stories about houses being trashed, etc. that professional landlords will cover with insurance (and that add to the price of a rental). By not being experienced enough to cover themselves, many renters expose themselves to a huge amount of risk. As the horror stories propagate, they will look to reduce their risk in other ways such as discriminating against renters that they have pre-existing biases toward. Given the amateur nature of their landlords, I don't see a real way for Airbnb to stop this type of discrimination other than by providing insurance coverage -- which, of course, would significantly raise the prices of Airbnb rentals and likely force many hosts who are already operating illegally (i.e. against the terms of their leases) from the market. No insurance company in the world would be willing to underwrite a policy for damages that are already prohibited under an existing contract.

by exelius 10y ago

cmurf 10y ago

I agree with the idea that there are inefficiencies, unfairnesses, externalities in the "legit" way of operating short term rentals. But there are many hotels without 24/7 customer service, where the front desk is closed after 10pm and you get to call a number with urgent needs (like plumbing failures or whatever), etc. And they are cheaper than typical hotels, as are typical bed and breakfasts as compared to the boutique b&b's. So it's completely fair to be critical of all of these inefficiencies, but I think it's wrong to suggest AirBnB has some particular innovation other than their app connection buyer and seller, and themselves evading and enabling others to evade, the level playing field. Such as it is.

exelius 10y ago
I think we're saying the same thing. :) I don't feel Airbnb is particularly innovative on the technology side; they're just exploiting a combination of inefficiencies in government regulatory mechanisms and the naivete of inexperienced landlords. There are plenty of horror stories about houses being trashed, etc. that professional landlords will cover with insurance (and that add to the price of a rental). By not being experienced enough to cover themselves, many renters expose themselves to a huge amount of risk. As the horror stories propagate, they will look to reduce their risk in other ways such as discriminating against renters that they have pre-existing biases toward. Given the amateur nature of their landlords, I don't see a real way for Airbnb to stop this type of discrimination other than by providing insurance coverage -- which, of course, would significantly raise the prices of Airbnb rentals and likely force many hosts who are already operating illegally (i.e. against the terms of their leases) from the market. No insurance company in the world would be willing to underwrite a policy for damages that are already prohibited under an existing contract.