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I have some degree of sympathy for the incumbents. Imagine you're in the hotel business. In your world: * You're a corporation * You've got insurance requirem
by bradleyland 14y ago
I have some degree of sympathy for the incumbents. Imagine you're in the hotel business. In your world:
* You're a corporation
* You've got insurance requirements
* You've got operational licenses
* Your product is taxed
All these burdens were layered on over the years. Some of them are a result of consumer protection advocacy. Some of them are intended to support the communities in which the hotel is based. Agree or disagree with them, all hotels have to play by the same rules. When right-wingers complain about "regulation", this is the kind of thing they're up in arms about. Services like Uber and Airbnb do an end-run around these business burdens, and the incumbents are crying foul.
Granted, many of the incumbents are easy villains. Corruption almost always accompanies regulation. When you focus the power to set the rules in the hands of a small group of people, that group is always going to get a lot of attention from those whose interests are affected by the rules. The trick is to find the right balance between regulation that protects the public and limiting the power of regulators so that corruption doesn't consume the whole industry.
Having said all that, occasionally an industry needs a reboot. This could be the time for taxis and hotels.
- jamiequint 14y agoAt AirBnB's current scale this actually causes an annoying problem. It seems they have a non-negligible effect on the cost of rent. Since AirBnB does not have the requirements listed by the OP above they are able to operate at a lower cost and capture demand that would have otherwise gone to hotels. This demand then fills up buildings that were originally intended to be multi-family residential buildings and are now effectively being used as hotels reducing apartment supply and driving up cost.
- civilian 14y agoYou're right and you explained it well, but I don't agree with the characterization of it being "annoying". It's just the market figuring out the best use of the space. But I also don't live in NYC... :D
- MaysonL 14y agoSo now maybe some hotels will realize they can make more as apartments?
- 9999 14y agoI don't feel any sympathy for the taxi cab industry. Many of the regulatory "burdens" they face are consumer protections enacted because the taxi cartels were constantly abusing their customer base. With no outside competition, they could afford to do that. Uber has voluntarily implemented most of the requirements that taxi companies have been forced into compliance with simply because it makes for a better customer experience. Fixed rates to airports? Check. Accepts credit cards? Check. I've gotten into countless arguments with taxi drivers over taking credit cards even when it's written right on their cab that they have to take credit cards.