New Book Describes How AirBNB Influenced City Laws (backchannel.com)
"For years, Airbnb was the friendly foil to Uber, aiming to work with cities rather than against them," writes Slashdot reader mirandakatz. "But as it grew and regulatory challenges mounted, the startup had to grow fangs." She shares an excerpt from a new book called The Upstarts: How Uber, Airbnb, and the Killer Companies of the New Silicon Valley Are Changing the World.
The reality people saw often depended on where their sympathies lay. Regulators, left-wing politicians, hotel CEOs, union leaders, affordable housing advocates, and angry neighbors tired of carousing guests saw Airbnb as nothing but a rule breaker from the far-away land of arrogant, entitled billionaires. Investors, hosts, property owners struggling to make their monthly mortgage payments, travel-discount shoppers, and high-tech aficionados tended to believe in the startup with good intentions that was disrupting the stultified hospitality industry.
The book is by Brad Stone, who also wrote The Everything Store: Jeff Bezos and the Rise of Amazon. He describes how "good AirBNB" got Portland to eliminate the $4,000 permits for B&Bs by agreeing to collect lodging taxes from AirBNB hosts (and by opening a Portland call center). But his excerpt ends as "momentum was shifting" against AirBNB in New York City, as powerful hotels and their service employee unions convinced city lawmakers that legitimizing the company would be "politically radioactive" -- while the company's CEO "was going to fight for every inch of territory".
The book is by Brad Stone, who also wrote The Everything Store: Jeff Bezos and the Rise of Amazon. He describes how "good AirBNB" got Portland to eliminate the $4,000 permits for B&Bs by agreeing to collect lodging taxes from AirBNB hosts (and by opening a Portland call center). But his excerpt ends as "momentum was shifting" against AirBNB in New York City, as powerful hotels and their service employee unions convinced city lawmakers that legitimizing the company would be "politically radioactive" -- while the company's CEO "was going to fight for every inch of territory".
and who pays the fees
Companies such as Airbnb and Uber serve to show just how regulated most industries are. When they waltz into an existing industry with services just different enough to escape regulations, the suffocating nature of special interest-driven regulation becomes apparent. Entrenched taxi companies demand licensing restrictions. Hotels demand regulation and taxes. Unions demand classification of contractors as employees (and people realize they aren't so different from each other -- employees are just special contractors with government-mandated benefits). The New York decision is a classic example of special interests aiming to limit competition and creative destruction.
"No man's life, liberty, or property are safe while the legislature is in session." -- Judge Gideon J. Tucker
Classing contractors as employees is good! Or we can just forget about an min wage and let people be deep in the hole to the place they work for to pay for there tools needed to do the job.
Time to just come out and admit it, "sharing economy" things are just unregulated businesses.
AirBnB was fine when it was actually B&B's, but as soon as it turned into "entire building" or "entire condo", it became an unlicensed hotel service, and that is bad because it puts substantial pressure on the rental housing stock, and in some cities like SFO, NYC and YVR rental housing is at such a premium, and no new housing is being made available, that AirBnB shouldn't exist in these cities.
What AirBnB should have done to "hose off" claims of destroying rental stock is to ALSO become a conventional rental management payment gateway. If it did that, then the same people who want to rent a unit monthly unfurnished can also list their units on the service with the stipulation of "month-to-month lease" or "fixed lease expiring on (date)" and thus anyone who wants to actually wants to see the history of a unit wouldn't need to go very far.
Likewise with Uber. Uber should have initially started out as "car sharing" where person X is going to Y, if you need to go to Y too, X will go out of their way to get you" and gradually moved up to "safe taxi/limo service" with finally having "automated personal vehicle service". That way Uber acts as the last mile of a conventional transit system instead of being "an alternative" to legal taxi services, which is why it's ruffling so many feathers with cities. When it starts doing things that are not in everyones best interests (like harming union activities) it is quite literately asking to be regulated out of existence.
Much of the "sharing economy" comes at the expense of those that are following the rules. So in the case of NYC, SFO and YVR, both AirBnB and Uber have damaged a lot of goodwill with the cities they operate in and in the case of YVR(Vancouver) AirBnB got a huge slapdown, the city put in place empty-home taxes, and the province put in foreign-buyer taxes. If AirBnB didn't exist, the pressure on rental prices would go back down. Uber is also banned from operating in Vancouver since it tried to operate without appropriate licencing.
You really think the government is out to protect YOU?
How cute.
Would this be the same government that uses Stingrays against you?
Would this be the same government that performs warrantless wiretaps?
Tell me how this government has as a goal to protect us.
Your justifications for that government are going to be hilarious.
Without playing to either side of the political spectrum, I mean, honestly; do you see anti-hotel legislation flourishing during Mr. Trump's administration?
Happiness in intelligent people is the rarest thing I know.
Ernest Hemingway
...your fun at partys...
I've never heard of a "service worker union". Could definitely use more.
because for high demand areas with lots of tourists the only thing that keeps everything from becoming a hotel is zoning; and AirBnB ignores zoning (kinda has to).
From there you've got the folks who work in an area unable to live anywhere near it. That means long, soul crushing commutes and the problems that come with them (lots of nasty traffic and lots more accidents/pollution/etc).
Cities do zoning for good reasons. We regulate businesses to solve existent problems; not just to spoil fun. You nailed it with "unregulated businesses". The only solution is to enforce the regs, which puts AirBnB & Uber out of business since their entire model is to side step the regs.
Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
The problem with AirBnB is that it doesn't distinguish property owners who are renting out a room in their primary dwelling are doing it to earn extra cash on the side, versus landlords who use it to turn entire buildings into vacation rentals without regard to noise ordinances and the surrounding rental market. So, AirBnB defends itself by holding up the former case as an example, while ignoring the legitimate complaints caused by the latter case.
Let's be absolutely clear here: for many major cities, if apartment landlords are able to use AirBnB, they would make a lot more money than they would through regular rentals. If enough of them do this, it would increase the cost of rent for the entire region by making housing more scarce. This is unacceptable.
Cities have fought back by trying to force limitations on the circumstances under which an AirBnB would be allowed. But AirBnB fights these because it threatens their business. They put out propaganda saying that cities are limiting the freedom of struggling property owners, or accusing government of bowing to some all-powerful hotel lobby. The reality is that they care nothing about the destruction of the housing market, or to noise complaints. I know from first-hand experience: they do not take noise complaints seriously; as long as they get their cut, there's no accountability. I've had to call the police on various "guests." I've complained through their site numerous times, to no avail. I have no leverage.
Regulations are not some intrinsic evil as libertarians would put it. Until it happens to affect YOU, there's always this prevailing belief that it's nobody's business to dictate what others should or should not be able to do. But let's see how you deal with AirBnB guests who party until 3-4 am on a weekday when you have to get up in the morning to work; how you deal with landlords who ignore your threats to take them to court; how you deal with having to call the police on a weekly basis until even they stop caring because there's nothing they can do except tell drunk asshole guests to quiet down. Let's see how you deal with having your property value decrease because you're next to a 24/7 party house. Let's see how well your "live and let live" attitude serves you when you find rents increasing in your region by 10%+ every six months because every fucking apartment owner is doing AirBnB so that they can make $4000/month on each apartment instead of $2000/month.
Uber is burning through VC cash at a prodigious rate. At some point that will stop. Maybe it will stop before Uber has eradicated the incumbents. Maybe it will happen after Uber has eradicated the incumbents. But if you think that the hammer won't come down on the public at some point so that all those VCs that invested get their fat payout, you're delusional.
Hundreds of years did little old ladies rent their grown-up kids rooms to strangers to have some additional income by hanging a sign in the front-yard, but now since it's done digitally it's a 'problem' for cities, because they can check easily how many there are, vs. driving around the country counting bed an breakfast signs in front-yards, which they obviously never did.
Taxis and hotels have become too expensive and a pain to use. Just like cable companies, they have a monopoly so service is lousy, too expensive, and they could care less. Alternatives are starting to wake them up, but rather than compete better, they use their protectionist schemes to chop back the competition.
sigs are for losers (except to point out that sigs are for losers)