3 ms·

Airbnb definitely has become a great example in the 'if you don't regulate yourself as an industry you will become regulated whether you want to or not.' Unlike

Airbnb definitely has become a great example in the 'if you don't regulate yourself as an industry you will become regulated whether you want to or not.' Unlike some of the dynamics in some of the other industries the people that airbnb exploits are individuals who rent/own property and every new airbnb host is effectively having to relearn every problem and potential pitfall/cost that hoteliers or seasoned short-term rental property owners have already solved and priced accordingly. I feel like people don't give enough criticism of Uber/Lyft/Airbnb of them profiting off people who aren't properly evaluating their expenses as a business. Most of what they offer probably should be more expensive than what they end up being but instead because people aren't experienced enough to properly cost things and undervalue what they are providing.

sokoloff 8y ago
I hear that argument fairly consistently about Uber drivers, but I ask most of my Uber drivers their experience on the platform. Almost every one of them seems to have quite a good grasp of the economics that are relevant to their situation. They break down into 3 groups. The smallest are people between jobs. They're doing something that's better than their best alternative. The next largest group are the occasional drivers, meaning Uber is not their main job. These people typically already own a car, so the fixed costs are leaving their pocket every month whether or not they drive ride sharing. Ride sharing more than comfortably covers their variable costs, so they're making money. The largest group (in terms of rides given/taken, not in terms of drivers) are people who are driving Uber essentially full-time. Many of them have bought a car specifically for its Uber suitability (good gas mileage, low maintenance, etc) and I think these drivers are properly thinking about their expenses (because they're pretty compartmentalized). I know it's common to think that the drivers are not fully and rationally evaluating the value proposition that Uber offers, but I see pretty frequent evidence to the contrary. There are fewer than 5% of people for whom I ask the question who respond in a way that makes me think that they think their predominant expense is "just gas money".

sokoloff 8y ago

I hear that argument fairly consistently about Uber drivers, but I ask most of my Uber drivers their experience on the platform. Almost every one of them seems to have quite a good grasp of the economics that are relevant to their situation. They break down into 3 groups. The smallest are people between jobs. They're doing something that's better than their best alternative. The next largest group are the occasional drivers, meaning Uber is not their main job. These people typically already own a car, so the fixed costs are leaving their pocket every month whether or not they drive ride sharing. Ride sharing more than comfortably covers their variable costs, so they're making money. The largest group (in terms of rides given/taken, not in terms of drivers) are people who are driving Uber essentially full-time. Many of them have bought a car specifically for its Uber suitability (good gas mileage, low maintenance, etc) and I think these drivers are properly thinking about their expenses (because they're pretty compartmentalized). I know it's common to think that the drivers are not fully and rationally evaluating the value proposition that Uber offers, but I see pretty frequent evidence to the contrary. There are fewer than 5% of people for whom I ask the question who respond in a way that makes me think that they think their predominant expense is "just gas money".