Lyft
a16z.com
a16z.com
The only reason people of my generation don't go everywhere in a private black Suburban is because it's expensive. The only reason they use Lyft Line and not Lyft is because it's cheap. If you could get a private black car for $0.01 less than a Lyft Line you'd have the most popular app on the app store.
It's the same with AirBnb. If you could stay at the downtown Mariott for $110 and an AirBnb was $120, AirBnb would be dead. It just happens that AirBnb offers lower prices than traditional hotels and much more capacity in certain locations. People don't say "I really want to go on vacation and share a home with a stranger, so I'll check out AirBnb". They say "oh shit the Westin is charging $300 a night because there is a conference in town, I'll stay in someone's guest bedroom for $100".
Sure, the social thing is nice sometimes. Most Lyft drivers I get are more interesting than the taxi drivers I used to get (or at least more relatable to me). But all of the startups the "millenials" have fallen in love with either offer exceptional convenience (which is really about valuing your time), better pricing, or both. That's really all it's about. We're part of the free market like everyone else and we like to get things cheaply.
If I can find an apartment that is nicer than a hotel (they are not all nicer, of course) then I will gladly pay a premium for my own entrance, my own kitchen, my own fridge, etc.
Having spoken to my friends about this, I know I'm not the only one. I'm not a millennial, though, but then I doubt that millennials are the ones propping up AirBnb?
I was surprised to find quite a few listings that are just as soulless if not more-so than most hotels. I am assuming these are not primary residences but units furnished primarily for use on Airbnb. Though because they are very close to the conference and a fair amount cheaper, I'll definitely still be staying at them.
I'm sure internally they discuss their business more honestly but talking about their business being a social experience and being kind to the environment just makes a better blog post than "we're $x cheaper than our competitors thus we're the best".
I find this really weird, because it's more like a kind of cognitive dissonance than the straight forward kind of dishonesty that I can understand. every business person I have ever talked to or gotten advice from has always said that they don't buy on price, and they don't compete on price, and that doing so is very bad.
However, if you observe their actions? it's actually about price, you know, for a comparable product, just like microeconomics would suggest.
For me? It makes advice from business people seem a lot less useful; either they are straight up lying to me, or they aren't able to keep their own head straight.
For Lyft, the fact that they aren't ethics/attitude-challenged is worth something to me. And I'm not a crunchy save-the-world type. It would take significantly more than a $0.01 discount - more than $1 - to persuade me to go back to using Uber. Also Lyft drivers tend to be friendlier.
For AirBnB, I pretty much only buy on price. But there is a substantial segment of people who "don't like hotels" that like AirBnB. Most AirBnb listings aren't that competitive when it comes to price vs. hotels.
For family travel with kids, the options before AirBnB were more limited - you either had to upgrade to a hotel suite, paying Ritz-Carlton level prices for a one-bedroom at Holiday Inn, or stay in "suite" hotels like Homewood or StayBridge that tend to be on the outskirts.
Factor in some other amenities like full kitchen and en-suite washer+dryer, and AirBnB carved up a nice niche for the market that was not previously addressed.
That's fine and all, rich dudes aren't their target market. But I cringe when I hear VCs talk about Airbnb, because it's nearly universally clueless.
I think Airbnb is special in this way. It's a darling startup every VC loves and no VC ever uses.
I use both Lyft and Airbnb and I generally know more about my Lyft driver after a ride to the airport than I know about my Airbnb host.
Agreed. Maybe it was in its early days, but AirBnB today (In my experience using it ~10 times in the past 2 years, in major American cities. Could be different elsewhere) is that what you get is closer to a small boutique hotel service than a "social" experience, either with the hosts or other guests.
I talked to my airbnb host like twice - I would have loved a hotel but it was way cheaper. I hate talking to uber drivers. It's just a cheap convenient not terrible taxi.
The reason VCs didn't get airbnb isn't because they aren't millennials. It's because they're not cheap enough.
Relating to the problems of poor people is extremely difficult when you're rich.
That's far too strong a claim. Most times I've used Airbnb have been social experiences—pleasant ones in fact, that I wouldn't have had otherwise.
I'd say the same about Lyft, come to think of it.
I use it because it's a superior product: more space, a kitchen, interesting neighborhoods, multiple bedrooms for traveling with friends, affordable, etc. A friendly host that I want to hang out with is a plus, but not the reason I use the service.
But in general, there's not much "nb" in Airbnb. I think that would limit their market quite a lot if they over-emphasised that.
This is a pretty big deal and is why I always choose Uber over Lyft.
That said, for both Lyft and Uber, the drivers seem to be underpaid as a whole, and several have remarked to me that hitting $20/hr means they're doing well.
Instead of focussing on why Uber is bad they should try to focus on helping make lyft suck less.
If a jury decides that drivers are employees, transforming the U.S. personal transportation market is going to become a much more expensive proposition for Lyft's investors.
[1] http://www.sfgate.com/bayarea/article/Juries-to-decide-wheth...
"We have to bulk up to fight Uber. Lyft seem nicer at least, since Uber keeps getting caught doing sleazy things. Choose us, before we're completely commoditized."
Anyone know how this number is calculated? Tried the Google and couldn't find much.
Makes me think that Lyft may be intentionally matching women drivers with women riders where possible. Smart move, if so.
That's a subtle insight?!?
For my generation, it’s hard to fully understand the sea change of the millennial psyche.
If you are calling people 'millenials' then you've failed from the get go.
To them, I say: you were just as weird to the older generation when you were younger. So please, cut it out.
On a related sidenote, i use uber for the same anti-social reason i use airbnb. Uber to get a cab without having to talk to some random dude with a yorkshire accent on the phone for 15 minutes before i can manage getting a car to pick me up, and airbnb because i want a real apartment for myself, instead of hotel cucibles or a shared place. Couldn't care less about the made up social aspects of being stuck in traffic. Maybe I'm just not "millennial" enough.
I don't know if that's the case - I'd be interested in hearing if there is any difference in how the various age groups do, or do not use airbnb, uber, lft, etc....
My guess is that use of these services is much more closely correlated with income, than it is age.
> on average the 20-40 demographic is engaging in an entirely different form of economic interaction
And that is mostly out of necessity, not choice. People can choose to spend money faster than they make it or not. But the rising tide that floats all boats is gone and with it the perpetual growth and prosperity.
Worse for the economy is that when you're heavily indebted the only thing you can do is pare back on your expenses in order to both service the debt and build savings so that you never have to go into debt again. In some cases bankruptcy is also an option, but not if they're student loans. Which is a predicament many find themselves in.
See: http://adage.com/article/digitalnext/millennials-party-brand...
http://adage.com/article/btob/google-millennial-influence-ri...