Why Uber And Airbnb Might Be In Big Trouble

forbes.com

2 pointsugwigr2 comments

I think this article is exactly right. These types of businesses are not prohibitively expensive nor time consuming to start and leaner competition without the "rents" is always a danger for them.

In addition, companies like Uber and Airbnb will have to do work clearing regulatory hurdles leaving a "free" path for competitors.

"The early bird gets the worm. The second mouse gets the cheese".

Uber probably and Airbnb for certain are working to build regulatory hurdles behind them. In exchange for being allowed to compete against the same traditional real estate and hospitality businesses they came in to disrupt, they're working with municipalities to rewrite the regulations such that the Airbnb business model is specifically permitted while future would-be competitors are presented with similar or higher regulatory barriers to entry.

In a decade or so, if Airbnb and Uber are still around, expect to see them on the same side of regulations that they are currently opposing.

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