3 ms·
I think AirBnB was trying to have that vibe at the beginning. The problem is that you end up in a situation where that vibe doesn't scale. If you're trying to c
by mdasen 5y ago
I think AirBnB was trying to have that vibe at the beginning. The problem is that you end up in a situation where that vibe doesn't scale. If you're trying to create a business worth billions, you need a lot more hosts and transactions than amateurs accommodate. An amateur might host someone for a few nights a month or a few nights per quarter. A professional is going to have an investment property that they're looking to book as much as possible and with the conveniences that make sure they get good ratings from guests.
I think a bunch of things have started out this way. Uber/Lyft: just people driving in their spare time to help people out and make a little spare cash. The problem is that if you're an app that just relies on people helping others out for a little spare cash, you don't have a lot of capacity. If you don't have a lot of capacity, you're just a cute niche thing that isn't worth much. So you end up relying on full-time drivers and you need to cater to them and figure out ways to attract and retain them. An pro driving 60 hours a week is worth a lot more than an amateur driving 4 hours a week every other week - 30x more. Likewise, a pro renting out an investment property 25 days a month is worth a lot more than someone renting a room in their house a few days a month.
I think you end up with a pivot from "oh, this is a cute thing with a little compensation" to something that's just a regular business.
- brianguertin 5y agoSame thing happened while I worked at Turo. They pivoted from "If we all shared our cars, we won't need as many! Less traffic and better for the environment!" to "We need to optimize for people who are buying cars/fleets and renting them out like a business, as they bring us the most value"
- htrp 5y agoWhen did the pivot happen?