This is bullshit. I fund my startup by consulting 1-2 months per year at 40k/month. Zero people think it is impressive. But $25k of Obama cereal makes a better story.
A better story is better marketing.
Subject: Airbnb (2011)
121–130 of 165 posts
Re: Subject: Airbnb (2011)
#122Airbnb, like Uber, took advantage of regulatory inefficiencies instead of market inefficiencies. The model is do something (in the minds of regulators) illegal, quickly enough that you can become large enough to get a seat at the table when the regulations are reworked. The counter example to these companies are the ones that quickly raised capital to dump scooters on public streets before they could be shut down by…
I see the regulatory inefficiencies as being totally different though.
It didn't make that much sense apart from protecting holders of medallions for it to be illegal to pay someone for a car ride, but I would actually like there to be laws protecting guests and innkeepers, and preventing the apartment across the hall from turning into a hotel.
Re: Subject: Airbnb (2011)
#123Why didn't VRBO/HomeAway become AirBnB? It seems there was already a marketplace for short term vacation rentals....
I think VRBO/HA actually has higher revenue IIRC
Re: Subject: Airbnb (2011)
#124I would be very curious to see what barriers to entry AirBnB has developed vs. say, Uber. While both are marketplaces, Uber benefits tremendously from understanding traffic patterns, from seeing how people ride, from being able to give drivers the option of traveling certain directions, etc. All of that data is worth billions of dollars and not easily discovered, and technically quite challenging to gather and exploi…
Airbnb has a global network effect: If I booked my last two holidays on Airbnb, I am more inclined to do it also for the next one out of convenience. I'm already verified anf signed up and I know the interface etc... This requires a global network of hosts.
Any competitor has to build a global network of comparable density to be compatible.
On the other hand, Uber's network effect and synergies are mostly localized to cities. If I move to a new city and there is a competitor with lower prices, chances are I'll install their app eventually, even if it takes me a few weeks.
Re: Subject: Airbnb (2011)
#125Earlier quoted context omitted.
Where do you pay your tax to then? That's a reasonable enough definition of where you live.
In New York State. I pay the exorbitant taxes which pay for, among other things, protecting the water from the huge city down the road that I'm apparently "damaging" by living there a few weeks out of the year.
Sounds like you need to get a better tax accountant. If you only spend a few weeks a year in New York, then you shouldn't be paying much tax there at all.
Re: Subject: Airbnb (2011)
#126Note there is a survivor bias here.
Might be even more interesting to see PG's email exchanges with other VCs on some then successful but later failed startups.
Re: Subject: Airbnb (2011)
#127Why didn't VRBO/HomeAway become AirBnB? It seems there was already a marketplace for short term vacation rentals....
Because they didn't do rooms in an already occupied house (and still don't). AirBnb started with renting couches or spare beds. They only moved into whole houses later, after they built up a reputation, and more importantly, built up their system of tracking the reputation of the renters.
What % of AirBnB business is single room in otherwise occupied house?
Re: Subject: Airbnb (2011)
#128I would be very curious to see what barriers to entry AirBnB has developed vs. say, Uber. While both are marketplaces, Uber benefits tremendously from understanding traffic patterns, from seeing how people ride, from being able to give drivers the option of traveling certain directions, etc. All of that data is worth billions of dollars and not easily discovered, and technically quite challenging to gather and exploi…
Airbnb has a global network effect: If I booked my last two holidays on Airbnb, I am more inclined to do it also for the next one out of convenience. I'm already verified anf signed up and I know the interface etc... This requires a global network of hosts. Any competitor has to build a global network of comparable density to be compatible. On the other hand, Uber's network effect and synergies are mostly localized t…
In addition to that, AirBnB takes a lot of the headache out for hosts in regards to local laws.
In San Francisco for example, AirBnB collects and remits the local hotel tax on behalf of hosts, making that a non-issue for hosts. But when I used AirBnB in Italy I had to meet the host and they needed to charge me the tax, print a receipt, and had me sign something...all which I imagine was because at the time or in that locale AirBnB had not set up that convenience for hosts yet. And in SF, they only do this if AirBnB is the sole platform you use--if you use multiple then you'd have to collect/remit taxes yourself I believe. Probably not an issue for someone who rents out multiple units and treats AirBnB as their main job, but for the little guy that just wants to make a few extra bucks from an extra couch, room, etc. here and there AirBnB navigating the tax stuff is huge.
Re: Subject: Airbnb (2011)
#129>So I think it can scale all the way to the bed and breakfast market > But I am not sure they can take on the hotel market Not an inaccurate assessment.
> > But I am not sure they can take on the hotel market
> Not an inaccurate assessment.
Not sure. I have stayed in AirBnBs on vacation in other countries and I have stayed in them many times on business, first during a conference when all the rooms were booked ( -- our admin suggested it!) and then after that was so great (we had a whole house for a half dozen team members) we almost always use it. Most people prefer it, though some prefer to have their own place rather than share, even though everyone has their own bedroom. We give everyone a choice and most people choose an airbnb over a hotel.
I assume "take on" doesn't mean "replace" but "become a significant player". It doesn't work in Manhattan nor, somewhat surprisingly does it in Omaha, but in most major conurbs its fine.
Re: Subject: Airbnb (2011)
#130Earlier quoted context omitted.
Perhaps AirBnb should actually follow the law in NYC (30 days minimum) until they can lobby enough to change the law.
...why? What makes this law worth following in the first place?
Because it directly impacts the residents who live there full time and pay all the taxes to that city and state? Every day that you don't live in the city and make a purchase outside the city is a tax-dollar that city is missing out on and that someone living full time in the city is paying.
I live in downtown Toronto and here are some of the issues i face due to Airbnb:
i) Some of the residents make living a hell. They come to party, don't respect the neighbours, are loud till late, trash the place and some have even gone to break the buttons in elevator.
ii) With Airbnb, new owners and renters are priced out of market. People with more money but new units as secondary investment and just Airbnb it instead of renting it, thus creating artificial shortage of available units to full-time renters.
One of the fascinating things about NYC is it's vast array of local businesses. Guess who do these local businesses need? Full time employees who go to work every day and not for 3-11 days.