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So in the case of AirBnb, their service is helping people find places to stay?
by cinquemb 14y ago
So in the case of AirBnb, their service is helping people find places to stay?
- dangrossman 14y agoIs all the money you pay to Airbnb for the service of helping you find a place to stay? Or is most of it being transmitted to the property owner after the end of your stay? Yes, it is; they are acting as a money transmitter. Money transmitters typically take some of the money; they're licensed businesses, not charities.
- gburt 14y agoHow is being a "money transmitter" any different than buying the "inventory" and reselling it? Airbnb could have an "expense" paying their providers. This seems crazy.
- cinquemb 14y agoIf Airbnb says that they are being paid for the service they provide, and part of that contract with their customer is to pay a property owner (like an Travel Agent), does that change things? Would a Travel Agent be called a money transmitter? As someone asking someone else who seems to know more about this than I, does this lawsuit have legs to stand on? [Edit: seemed to be answered here https://news.ycombinator.com/item?id=5677731 https://news.ycombinator.com/item?id=5677731]
- dangrossman 14y agoTravel agents are also licensed in California (and other states). They also have to post a bond to cover any money they're holding on behalf of customers, just like a money transmitter.
- cinquemb 14y agoI see. Looking into the background of all this, I think there is an argument to be made… whether it will be heard or not in this context is a different story. Well maybe this presents the perfect opportunity for these VC and portfolio companies to retreat offshore to the tech seastead they created for their very own special SEZ (semi-jokingly).
- kalleboo 14y agoBut wouldn't that apply to Xbox too? Most of the money you spend goes to the game developer.