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Is this a risk waiting to explode? I mean at some point someone will have a IMF chief type incident at a Airbnb booked type service right? Will the startup survive the resulting lawsuit and media flairup? I wish them all the best but personally I would not use nor invest in this service. Think PG's initial gut instinct was right.

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I am sorry but I can't get your point. Is the hotel of the DSK incident fame, out of business? Who would sue, who?

Maybe my mis-understanding on how service works. Happy to learn:

+ So basically I go to airbnb + Book a room at that someone has put up. + This is a private residence, where they have a air-mattress

Does air-bnb do any screening of people putting up rooms or is it purely reputation based system? If the latter surely it is a ticking timebomb?

Say the worst case happens (touch wood it never does). Someone gets killed, raped, kidnapped staying at a air-bnb booked place. Any civil liablity for air-bnb? Any duty of care? Publicity fallout?

I think your understanding of how the service works is spot on. There's reputation system of sorts since you can comment on people you've stayed with. If anyone ever got a single bad review, I imagine no one would ever stay there again. Airbnb themselves don't do any of the screening.

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