I'm realizing I'm confused about what value airbnb is offering. If they don't vet people on either end, are they really just a craigslist with payment processing?
The claim is they're a craigslist where you don't get to find out who the other person is until after the payment processing, which would seem to most people to be negative value. Edit: Except for to Airbnb.
Exactly this. The first blogger to go public with a report of a place being trashed by an Airbnb guest pointed out that with Craigslist, it is EASIER to contact the guest individually beforehand. Airbnb subtracts value from the typical transaction that would be arranged on Craigslist. That's because Craigslist makes its money from help-wanted ads and a few other ad categories, and doesn't need to monetize transactions for short-term stays in people's homes to keep right on making money.
Airbnb claims to be a force for disintermediating the short-term rental industry, but it desires to be market-leading intermediary. It isn't offering a market-leading level of customer service after a problem happens. Nor is Airbnb doing as much to prevent problems as other startup companies in the same space--several of those companies take much greater care to verify guest identities before setting up the transaction. What Airbnb appears to want, compared to other market participants, is to be paid as an intermediary without providing any particular value as an intermediary. That's nice work if you can get it, but that's a business model that is ripe for disruption and not a business model that I would invest in.
After edit: I hope everyone is reading the newly submitted article here for the details of what the Airbnb autoresponder message replying to the "urgent" help email address at Airbnb looked like not long ago. As the host thought after his place was trashed, "This freaked me out when I was frazzled. Hundreds of millions in venture financing, millions of dollars in fees, and no 24-hour help desk for emergencies? What am I paying them the exorbitant fees for?"