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Ahead of IPO, Airbnb achieves profitability for second year in a row

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Re: Ahead of IPO, Airbnb achieves profitability for second year in a row

#231

Earlier quoted context omitted.

So, you're mad at Airbnb because the government isn't regulating it properly?

Because it's only illegal because it's not regulated "properly?"

Airbnb isn't doing anything illegal, the hosts are. If New York wants to put forward legislation that obligates Airbnb to develop a system for tracking that, great. But they aren't going to do it unless they have to.

Re: Ahead of IPO, Airbnb achieves profitability for second year in a row

#232

Amazing what a company can do when they ignore regulations and simply extract wealth out of our communities. 80% of their profit comes from huge corporate listings yet they advertise themselves as a "home-sharing" site. Nonsense.

They aren’t “extracting wealth” from communities any more than Booking.com does. In fact, AirBnB creates wealth. A person renting out a room on AirBnB is economically better off than if they didn’t.

> In fact, AirBnB creates wealth

Building something creates wealth. Changing the channel through which payment occurs doesn't create wealth. The host's revenue comes from displacing hotels; the guest's savings come from increased rent for other tenants. If you consider the negative externalities imposed on neighbors, there'd be a stronger argument that AirBnB destroys wealth.

Re: Ahead of IPO, Airbnb achieves profitability for second year in a row

#233

Earlier quoted context omitted.

I grew up there and my dad owns a real estate brokerage. I can confirm that this is pretty common, and it's a great example of Airbnb making a market that has existed longer than I've been alive (vacation rentals in a resort city) orders of magnitude more accessible to the average person. I've seriously considered (to the point of starting to model it) buying something that can credibly be called "walking distance" t…

Wow, didn't realize how inexpensive homes are there (vs LA, SF at least. I see 2 bedroom/2 baths for under $200k..tempting!

It's true, you get a phenomenal home that's essentially part of a giant resort for much lower than LA (and you're only 2 hours from LA, 2.5 from San Diego, and 1.5 from Orange County). Yes, the summer is awful, but if you like golf or tennis and can work remotely, you can always leave for the summer. I'd be happy to put you in touch with my dad if you're actually interested (no pressure if you prefer to avoid an agent right now or have someone you already work with though).

Re: Ahead of IPO, Airbnb achieves profitability for second year in a row

#234
post #143

Earlier quoted context omitted.

Wow, didn't realize how inexpensive homes are there (vs LA, SF at least. I see 2 bedroom/2 baths for under $200k..tempting!

Compared to some of the most expensive housing in the USA? I'd bet more 2bd 2ba homes are sold <200k in the USA than the other way around by a long shot.

The difference is that Palm Springs is a resort city with something like 150 golf courses, is 2 hours from LA, 2.5 hours from San Diego, 1.5 hours from Orange County, and even has Big Bear ~1.5 hours away if you like to ski in the winter without having to make a weekend trip (it's not great snow, but it is a mountain).

Re: Ahead of IPO, Airbnb achieves profitability for second year in a row

#235

Earlier quoted context omitted.

Good hotel still have pools, can be located outside of downtown, and sometimes even in-room kitchens (if that's what you want). They also have maid service, room service, and a front desk. The only advantage you get from an AirBnB is a unique facade, paired with having to clean up after yourself and possible fire and health code violations.

Good hotels also overcharge for parking, have slow, sketchy WiFi, charge $10 for a bottle of water and every person you encounter requires a gratuity. I like hotels but they can be annoying and everything in the hotel is overpriced and designed to squeeze your wallet. There is no excuse for a bottle of water that costs $10 when the same bottle at the 7-11 outside sells it for $1.99. Even worse are hotels that charge…

You're just going to bad hotels. Every hotel I've stayed at in the US in the past quarter (around six of them) had ~16 Mbps free Wi-Fi, complimentary water bottles in my room each day, and free parking (with the exception of hotels in Manhattan or the likes).

I'll admit that gratuity is annoying, but that's a cultural problem with the US, not something specific to hotels. We just happen to live in a country where every person who serves you is expecting a tip. And to be fair, if I was staying at an AirBnB that for whatever reason had housecleaning or other service, I'd probably have to leave a tip there too.

Re: Ahead of IPO, Airbnb achieves profitability for second year in a row

#236

Earlier quoted context omitted.

Demonstrating compliance with the law can be and often is a legal requirement itself.

There aren't any laws here for Airbnb to comply with. That's my point: the regulations are on the hosts. If the Government wants to regulate Airbnb, they need to pass legislation that requires Airbnb to do something. Exactly as they did with YouTube via DMCA.

You are just incorrect. For example, Airbnb was required to comply with host registration and caps on short stay rentals in San Francisco (e.g. discussed in [0]). Airbnb is legally required to demonstrate its own compliance, separately from what laws govern hosts themselves.

It seems premature to claim whether Airbnb is subject to more laws like this or not. Many cities have enacted new regulations or sued Airbnb over failures to comply with existing laws, and it seems like a complex legal issue still in the midst of being hashed out.

[0]: https://www.sfchronicle.com/business/article/Airbnb-loses-th...

Re: Ahead of IPO, Airbnb achieves profitability for second year in a row

#237

Earlier quoted context omitted.

There aren't any laws here for Airbnb to comply with. That's my point: the regulations are on the hosts. If the Government wants to regulate Airbnb, they need to pass legislation that requires Airbnb to do something. Exactly as they did with YouTube via DMCA.

You are just incorrect. For example, Airbnb was required to comply with host registration and caps on short stay rentals in San Francisco (e.g. discussed in [0]). Airbnb is legally required to demonstrate its own compliance, separately from what laws govern hosts themselves. It seems premature to claim whether Airbnb is subject to more laws like this or not. Many cities have enacted new regulations or sued Airbnb ove…

Dude, that was my entire point. Airbnb was required, via legislation, to do something, thus they are doing it. Advocating that they do something without being required to is what I'm commenting on.

Re: Ahead of IPO, Airbnb achieves profitability for second year in a row

#238

Earlier quoted context omitted.

You are just incorrect. For example, Airbnb was required to comply with host registration and caps on short stay rentals in San Francisco (e.g. discussed in [0]). Airbnb is legally required to demonstrate its own compliance, separately from what laws govern hosts themselves. It seems premature to claim whether Airbnb is subject to more laws like this or not. Many cities have enacted new regulations or sued Airbnb ove…

Dude, that was my entire point. Airbnb was required, via legislation, to do something, thus they are doing it. Advocating that they do something without being required to is what I'm commenting on.

I think we’re talking past one another. Nobody is saying Airbnb must demonstrate compliance with laws they are not subject to. Instead, I’m saying they might be required to demonstrate compliance with existing laws (not special new laws) if various city-led lawsuits against them end up revealing that Airbnb had been subject to various types of regulation all along (despite Airbnb’s insistence to the contrary).

Re: Ahead of IPO, Airbnb achieves profitability for second year in a row

#239

They're often considered similar businesses, but intuitively it seems to me that, long-term, Airbnb will be valued higher than Uber and other ridesharing companies. Home rentals seem to be simpler market to operate in than coordinating real-time supply and demand between drivers & riders. Additionally, Uber seems to be facing issues on the driver side of the business - they have a $650 driver acquisition cost & a 12%…

Another angle is that Airbnb also carries differentiated inventory vs. a completely commoditized good. If you are booking a guys ski trip vs a romantic weekend vs family reunion you are looking for a unique property. Airbnb, as the largest player, is most likely to have differentiated inventory, and therefore, the first place someone looks. So as a two sided market place, Airbnb has more value.

Re: Ahead of IPO, Airbnb achieves profitability for second year in a row

#240

Earlier quoted context omitted.

There are many jurisdictions where this is an extremely dangerous assumption. Knowingly facilitating illegal transactions is often a crime.

Do you have a case where Airbnb is being charged with doing that?

"“It will potentially require home-sharing sites like Airbnb and their hosts to comply with local hospitality rules in every city in the United States,” Stemler told PacerMonitor. “It could also make home sharing sites responsible under the Civil Rights Act and the American with Disabilities Act. They would also have to comply with just about any law or restriction that a local government maintains pertaining to hotels.”"

https://www.pacermonitor.com/articles/2018/08/02/airbnb-host...

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