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My biggest problem with business models like AirBnB and Uber are that they don't solve the inefficiencies in the existing industry. Instead They transfer the ri
by wwkeyboard 14y ago
My biggest problem with business models like AirBnB and Uber are that they don't solve the inefficiencies in the existing industry. Instead They transfer the risks inherent in the operations of those industries from businesses who understand, and therefore price according to, those risks, to individuals who don't. When the downsides of those risks happen, as in the case of the OP, the individual, who didn't understand or price according to that risk, is screwed. This is no different than the businesses who sold sub-prime mortgages to people who couldn't afford them, and then turned around and passed that risk off as bundled investments.
- chockablock 14y ago> they don't solve the inefficiencies in the existing industry I disagree. To use some examples given in the original article: how about a guest being able to rent a room in a neighborhood that doesn't have any hotels? Or a host being able to earn money renting out an apartment that would otherwise sit empty? Which is not to say that your other points about pricing and risk are not valid, of course.
- wwkeyboard 14y agoSometimes, but we don't know why there aren't rooms in those neighborhoods, or apartments sitting empty. If it's a genuine attempt to remove inefficiency, thats one thing, but an attempt to "beat the system"(the first part of sentence that talks about the empty rooms and location) may circumvent legitimate rules. For example HOA rules about subletting.