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Technology Stocks : Airbnb, Inc.
ABNB 126.54+0.2%3:59 PM EDT

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To: Glenn Petersen who wrote (5)12/9/2020 2:40:31 PM
From: Glenn Petersen  Read Replies (1) of 77
 
Airbnb’s largest drawback just isn’t essentially the resentment of people that use it however the resentment of people that don’t. This is uncommon.

Airbnb’s Biggest Problem

November 18, 2020
Pehal News Team

This article is a part of the On Tech e-newsletter. You can sign up here to obtain it weekdays.

There are sure inevitabilities of the digital world. One is that middlemen like Uber and DoorDash are typically hated by those who use them.

But Airbnb has a distinct, doubtlessly thornier drawback. Even should you by no means use Airbnb, you continue to may hate it as a result of renters on the home subsequent door throw loud events or your quiet city is overrun by vacationers every weekend.

This resentment is a conundrum each for Airbnb, which launched particulars on Monday for its preliminary public inventory providing, and for the way forward for our communities. (Read extra from my colleague Erin Griffith about Airbnb’s prospects and plans.)

One of the web’s nice innovations is that nearly anybody with one thing fascinating to promote or lease can discover tens of millions of potential clients on Airbnb, Uber, Apple’s app retailer, Grubhub or Amazon’s on-line bazaar. These websites and others act like middlemen, connecting folks and companies with patrons like me, usually for one thing like a 15 to 30 % fee on every sale.

These connector corporations have outlined the web age, and so have the conflicts which have arisen when Uber drivers, app developers, Amazon merchants and others who depend on middlemen begin to resent them for charging an excessive amount of, making unfair guidelines, getting wealthy off their work or the entire above.

Airbnb is a digital intermediary, too, however the resentment appears to be completely different. Yes, there are a number of the acquainted gripes, by each homeowners and home renters. But Airbnb additionally has a distinct set of resentments that make it not much less hated, maybe, however hated in a different way in ways in which is perhaps more durable for the corporate to repair.

Airbnb’s largest drawback just isn’t essentially the resentment of people that use it however the resentment of people that don’t. This is uncommon.

If eating places hate handing over large fees to delivery app companies like DoorDash or if folks e-book what turn out to be incompetent babysitters on Care.com, it doesn’t essentially have an effect on folks exterior these transactions. With some exceptions, the hatred of middlemen tends to be confined to those that purchase or promote items or providers by means of these service suppliers.

But if folks throw destructive parties or shootings occur at a house rented on Airbnb, which may make the neighbors livid with the corporate. So, too, if communities or cities imagine Airbnb leases contribute to undesirable tourist influxes or rising housing prices. In some circumstances Airbnb could also be a scapegoat for gentrification or different neighborhood issues.

Airbnb is aware of this, and the corporate has devoted a lot of its attention to cities and regulators which might be involved it’s making neighborhoods and communities worse. In the financial document for its inventory providing, Airbnb included a number of pages of rationalization of a number of cities’ restrictions on Airbnb listings and the corporate’s efforts to “promote responsible home sharing” and “healthy” tourism.

The tough factor is whereas middlemen companies can attempt to change what they do to deal with resentments of eating places, app makers, Instacart consumers or different enterprise companions, it’s more durable for Airbnb to resolve the hatred of people that by no means work with the corporate in any respect.

(Full disclosure: My sister works for a resort staff’ union that has advocated for tighter regulation of Airbnb.)

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