Airbnb
avc.com
avc.com
The idea is great, but there are just too many people renting their properties who simply have no idea what they are really doing and how to do it responsibly.
I was receiving answers like 'Sorry, my flat is not available - it is a very short notice" from the renter, who's calendar was 'available' for my dates weeks in advance. From others I heard "This property isn't available, but I will offer you this and that", which were not even comparable. Then I came to the realization to avoid dealing with those who maintain multiple listings, as it's their main trick to lure guests with one available property and then try to market what they have really available.
All in all, there are just too many time wasting opportunities on Airbnb right now. I would rather pay a bit higher to deal with someone definitely reliable and who does it professionally. I think it will take few more years for Airbnb renters to pass the natural selection and earn enough reputation to be easily discoverable among those who rent their flats out to get a payday advance..
Gut-feeling says that AirBnB works once it has critical mass in an area - but until it has that, it's a mess. I'm not sure what they could do about it, it's really a chicken-and-egg problem. Perhaps it'll solve itself in time, as more areas develop critical mass.
I had a similar experience myself - applying for places and finding them unavailable - so now that I'm on the other end putting my place up for lease I'm sure to respond quickly and keep my listing up to date.
I've had a couple of ideas on how they could fix this problem with changes to the UX and considering I'm no designer I'm sure they have even better ideas and will fix it soon. I hope so anyway.
However I had tried it before in Paris and New York, and many people's places looked like they usually cater to couch surfers and are now doing the same but charging (often the same amount as a reasonable hotel!).
I think Airbnb has done a good job of curating certain lists (there's a collection of treehouse apartments/houses, for example, and cool, design-y places in London) and I'll probably look at those more than the regular area searches.
I have since learned that it is the norm and possibly fact for locals to realize this area is a bit more sketchy. But like I said, I'm not from Cali!
Now, I'll update in a week, after I leave, to see if I still feel the same way about it.
Dropbox has literally changed how I (and dozens of my friends) use computers.
Airbnb has opened the door to affordably travel the world. I was going to go to Barcelona for a weekend surfing trip in a week or two, and flights were £100 (from London) and hotels were £75+ per night. With Airbnb, I found an amazing apartment for £30 a night. That is a huge.
Traditionally, you have a hotel room - but that is just a room with no kitchen, meaning eating when travelling almost requires you to eat out, hugely expensive. With Airbnb I can find an apartment with a kitchen, and purchase local produce for lunches and such. Being able to request wifi in apartments is an insanely great feature if you're able to remote work.
I find the Airbnb website pretty bad if I am honest (incidentally, I them tons of feedback on it a few days ago) but I hope they are going to fix it. Asking me where I want to travel and only giving my a search box is mediocre, the benefit of Airbnb is that I can travel to places I have never even heard of, for less than traditional holiday resorts.
A lot of the best startups are the ones were you can use assets to brutally destroy the present market incumbents, and Airbnb is a perfect example of using a hotels largest advantage (erm, hotels) as their weakness. Airbnb will obliterate all present hotel companies eventually.
I'd bet money that Airbnb will be the largest exit of all batches Pre-2010 (which is when various friends' startups (and myself) were accepted, and well, we're competitive like that)
I can't speak to Dropbox, but Airbnb isn't really a revolutionary idea from the user perspective (although they get a lot of play here for being a YC company).
http://www.vrbo.com/ has been around since 1995. They were purchased in 2006 by HomeAway, who just filed for a $230 million IPO.
VRBO's model is different, in that they provide a classifieds service rather than actually handling the transaction directly; on the other hand, I've had much better luck finding good temporary apartment rentals in NYC using VRBO.
I'm not saying that AirBNB isn't useful -- or that there isn't some value in them handling transaction directly, but rather, that they're not really that revolutionary, and should they succeed in bridging the gap from "rent an air mattress" to "rent unlicensed privately managed hotel rooms," they'll likely find themselves falling afoul of local regulations and the neighborhood's ire. The "Three Big Myths About Illegal Hotels" are a good read:
Or is AirBnB a small (and staying small) player getting disproportionate lot of attention in the YC/HN world because they have friends here?
I'm not saying AirBnB is wrong or unsuccessful, just suggesting that sometimes "world-changing" really means "my friends and I personally like these guys better, so the other ones don't count".
Fred Wilson knows some of the details. That's why he wrote this unprecedented post about missing them.
If you don't understand the details of a situation, why not default to being nice instead of mean? Just look at the contrast in tone between Fred's blog post and your comment.
Look like vrbo has (and has been retaining) about a 10x multiple in traffic over airbnb. Granted, this isn't (again) reliable data, and also does not in any way speak to revenue, but this doesn't smell like unadulterated "lunch eating" to me.
http://guarantee.homeaway.com/vrbo/
Why is that? Intuitively, it seems like handling transactions directly would paint a target on their back in regards to the unlicensed hotel business, where regulatory and community concern appears to be a growing issue -- but I may not understand the details of the situation.
In general it is true that BigCo X could do function/feature/integrate Y and totally kill Startup Z - but it doesn't happen all that much.
I asked why they haven't done it. You haven't really addressed that -- you're attacking a strawman. I'm simply curious as to why VRBO's parent company hasn't decided to handle bookings directly.
VRBO already supports transaction processing -- they use it to sell the listings. They also went to all the effort of providing a consumer insurance service. Why didn't they add support for processing the booking transaction directly and guarantee it as a matter of course?
My guess is that because to do so would wading into a regulatory quagmire, and as an established company (rather than a disruptive startup), they have more to lose. Maybe Airbnb knows this, too, but is hoping to get away with it anyway -- at least long enough to either change the regulatory environment, or see their exit and leave the problem to someone else (see: napster) ...
.. but I could be wrong, so I asked the person who has the details :)
The processors and the banks have the power and can shut a merchant off if they determine that they're not playing by the card association's rules. The method that AirBnB employs is referred to as Third Party Payment Aggregation. They're processing payment on behalf of the hosts.
Venturing into this territory for an established company would likely cause a lot of pain. They might need to establish a relationship with a different processor and/or bank who would support the model. If they were to switch without first talking to the bank and processor they would likely be shut down quickly for violating the terms of their agreement. So it's not as simple as a relatively minor product pivot for VRBO.
A smaller startup can risk a lot more by carefully walking the line of what the bank/processor/association will accept. But they're still at risk, I believe. Unless maybe they have found some way to mitigate much of the risk (I can think of one or two that would be possible after building brand recognition), I'm not sure.
So I think you're right with your last paragraph but I think it has more to do with Credit Card regulation than hotel regulation... but I don't know anything about operating a hotel.
Here is my experience so that you can compare for yourself. I am quite certain that I will probably have someone from AirBnB comment and tell me that I just didn't know how to set something up right. That's fine. Still doesn't change my perception of the system being to hardwired for the novice, single room renter:
1. The setup with AirBnB was a lot easier than VRBO. The AirBnB interface is slick and nice..definitely pulled me in. :-)
2. They have a major glitch in the system. I put in daily rates for the off-season, and weekly rates for inseason...yet the daily offseason rates kept over-riding the weekly in season rates, and this caused a lot of potential renters to be very confused when they thought they were getting the "steal of a lifetime" on summer rates. Left a bad taste in my mouth, and with the prospective renters. VRBO may be more difficult to set up, but it's pretty idiot-proof when it comes to rates (thank God).
3. WIthout exception, every single client that inquired via AirBnB wanted some sort of discount or deal. 99% of my renters via VRBO will rent at the full rental price. And,my prices were exactly the same on both sites.
4. I cannot control fee or deposit scenarios on AirBnB. I am forced to follow their sites rules - which are heavily in favor of the renter and do not protect the owner enough (IMHO). Payment isn't made to the owner until the renter checks in, and there is no way to note a pet fee requirement. This scenario is not acceptable to me. It's too easy for a renter to cancel at the last minute, which puts me in a huge bind if the rental period is during the high season. On VRBO, I require a deposit up front, equal to half the rent, in order to secure my property, and a pet fee (which is legal in my state) per pet. Been working this way for 3 years.
5. In addition, the refund system is lacking in AirBnB. I have to select from their refund options. I cannot employ my own refund system. This, to me, is a big drawback. Each rental home owner I know has their own refund policy.
6. AirBnB controls all monies. This, to me, is the biggest issue I have. I am a good owner. I always seek to make my renter happy. I will go above and beyond to do so. I resent having a 3rd party determine if and when I get paid on my rental property. This is why I got rid of property managers in the first place, it's a layer of bureacracy that I don't need.
7. Vacation rental rules - many vacation areas have their own county or state rental laws and regulations. To my knowledge, the constraints put in AirBnB's system for booking or refunds do not leave room to incorporate those laws, potentially putting homeowners at risk.
I think it looks mean to you because you have a high estimation of AirBnB and you think I am belittling them.
I have a lower estimation of AirBnB (compared to my estimation of VRBO), and so I thought your pitch to Fred Wilson was overselling the potential ("eBay") and Fred was right to not buy into the overselling.
Now, there is are significant gaps between
1. AirBnB completely fails as a business and wastes everyone's money, but at least the founders had a learning experience.
2. AirBnB team and pg and the investors and customers make more money and worthwhile experience from AirBnB than any other use of their time and energy and capital.
3. AirBnB gets bigger than VRBO.
4. AirBnB gets as big as eBay.
I'd guess (but I wouldn't bet, because I absolutely to not have the infromation and insight that you and the team and the investors have) that AirBnB is at least "1.5" now and will peak at "2.5" and need a major lucky streak to hit "3". It's successful, but in my estimation (worthy of no more than a forum post) it is not up to the "eBay" comparison.
Fred guesses now (after he refused to bet, which frankly makes his blog post less interesting than what he wrote when he did have his hand on his wallet) that AirBnB is "3" to "4".
I'll note that my best business venture is a small "1", (capital investment and costs under $1000, weekend labor, revenues smaller than that).
It's amazing. Not only do they identify unused physical assets (extra space in people's homes/apts.) and create a market for it that undercuts an entire industry, they've created this amazing karmic serendipity of meeting new and interesting people from the very first moment you touch down.
Travel isn't just about seeing landmarks and whatnot, it's about immersing yourself in the local culture, and AirBnB provides that much better than most hotels can.
Combine the feel-good nature of the service with its recession/depression/financial-crisis/money-saving friendly, disruptive undercutting of a huge industry and I have no doubt they'll eventually be among the biggest incubator successes or exits.
And yes, they are growing:
http://blog.airbnb.com/airbnb-celebrates-1000000-nights-book...
I do wonder if they'll compete with Couchsurfing.com. The latter could pivot a little and offer the same kind of for-pay service AirBnB does, and already has a huge clientel.
Edit: just to elaborate on the recession-friendly bit. I've gotten very interested lately in companies like AirBnB and Groupon that enable people to continue spending despite adverse financial conditions, be it deflationary or inflationary. In the former, cash and credit becomes scarce, and in the latter cash loses its value and prices increase.
In either case, AirBnB has found an asset that has historically been priced at $0, and can hence undercut competitors all the way down to 0$. No established hotel can compete on price, only amenities, but in times of financial distress, customers tend to sacrifice amenities for lower prices. And what AirBnB can't offer in amenities, it compensates for with the social aspect that hotels can't offer.
Same with Groupon, they've created a win-win-win for the most part. Customers save money if the Groupon was something they wanted anyway, companies make money (assuming they did the math right on their deal), and Groupon makes money. Only the companies that people would have spent money on, but spent on a Groupon instead, lose, which is extremely difficult to quantify.
I don't know how much of this the AirBnB and Groupon founders foresaw, but I think both are brilliant. They've really got me trying to think up something similar now.
And it looks (and operates) like it. VRBO's virtual head has been on the virtual chopping block for YEARS. Truly a stale opportunity, though I don't know if Airbnb will be the executioner. The acquisition and resulting IPO for the parent company can be best considered as a flip, not a vote of confidence.
I love Dropbox too!
2. A VC/firm accepting their mistake and missed opportunity publicly is amazing indeed.
3. The best lesson was making sure the same is not repeated, aka Box on the table.
If someone makes it look easy, watch em. Roger Federer makes tennis look easy, so easy you wonder why everyone doesn't just do what he's doing. The court looks smaller, the ball looks slower.
Sure, a startup can't quite practice shots the same way those guys can, but notice that it's usually the same startups that you hear pulling off these amazing hacks/hustles that are also crushing every feature/product launch, are always in the press, etc. Reminds me of that Nike ad campaign showing players making their amazing, signature plays not under bright lights but alone at dawn over and over: "There are no cinderellas."
I don't think he meant that it was easy. I think he meant the exact opposite, which is why it's so impressive.
they also have a dedicated site for the cereals (and a song!!): http://www.airbnb.com/obamaos
I see it more as a story about creativity. They could have "hustled" selling something that wasn't novel, completely wasting their time. I don't think that most entrepreneurs lack "hustle" they lack creativity. It's much harder to develop, and some people don't have a talent for it no matter how much they try.
Could selling themed cereal be an accurate predictor of an election's results?
1. You cannot go to presidential nominating convention (or similar political event).
2. You cannot engage in unauthorised commercial activity (sell stuff) at presidential nominating convention (or similar political event).
3. You cannot engage in unauthorised commercial activity (sell stuff) without proper license, cash register.
4. You cannot sell food without proper license (stating your right to sell food), certificate(stating origin of your food; who's made your "Obama O's"? Are they safe?).
2. I'm sure this is the case, but they were likely able to circumvent this rule by not selling in an area directly controlled by the convention.
3. You don't need some kind of license for selling most goods, but food is basically a controlled substance. If it's pre-packaged, the packager is regulated, not the retailer.
4. Non-perishable food is regulated mostly at the packaging & handling level.
EDIT: They could have also claimed that it was art and not for consumption, which is a way to skirt the labeling requirements.
I don't mind the odd guy sneaking in a shameless plug here and there, but this was just a bit too forced and you just made yourself look silly. :/
and check the initial post's comment thread: the same comment caught Mr Wilson's attention.
so not that silly...
Your first minute is useless. I go to your site and understand, okay, you're basically an online tutoring intermediary. But the services you offer are difficult to figure out, there's no categorisation or tagging, the search is bad, and you're not sure if your primary customers are the people buying or selling the service.
All in all, desperate.
Will this one be more clear to you about the platform? http://ex.gs/4n7YXa
Basically the homepage is for experts, and this little url is for experts to get their clients.
Back to your question: Yes, tutoring is an important part of our service, if you type "english tutor" into that search box, you will pretty much get the idea.
At this moment, english tutor is our main focus and almost every visitor come to the site is to find tutor or is a tutor. So the search form is quite useful to them.
But we don't want to offer categorization or tagging now is because that there is not so much to be categorized or tagged. I personally don't like a 3 level of categories without any real content. And we don't want to tag our site to be a tutoring platform with those categories. So we tend not to show them at the moment.
Apart from that, everything you said is true. With the exception of we are not an online tutoring intermediary.
// ready to be downvoted for this useless moderation on moderation