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Thanks for this explanation. I know the standard model of VC subsidies to lower prices and gain market share. Airbnb is probably keeping its service fees lower

Thanks for this explanation. I know the standard model of VC subsidies to lower prices and gain market share. Airbnb is probably keeping its service fees lower than it can afford to or spending too much in other areas to grow faster using VC money. However VCs aren’t subsidizing Airbnb rentals like they are Uber rides. I’m a host myself and VC funding plays no role in what I charge. It’s mostly a function of market forces.

acdha 3y ago
Yeah, I think Airbnb has far better prospects than Uber/Lyft/DoorDash because they have a much stronger balance sheet and a bit more of a moat against competitors. The car/delivery services have the problem that most of their customers live in the area so someone doesn’t need to compete globally before they can undercut them (here in DC, multiple neighbors have commented that the taxis are both cheaper and more dependable now so they only use Uber when traveling), whereas Airbnb’s reputation does help travelers pick them over random websites in unfamiliar locations.