What a silly joke[1].<p>Though they are planning to launch additional services [2] @aaronapple below (above?) is right... regulatory changes are on the way.<p>Right now they're violating the law, don't collect or pay local taxes unlike real hotels, don't bother with ensuring that local rules and regulations are followed.<p>This will (and should) change soon. Hiding behind the people who rent out their spaces who are "supposed to pay local taxes" won't hold. Customer databases will need to be released to the IRS or local taxes withheld (which [2] indicates they're working on already).<p>Once they are forced to play on a level playing field, their rates won't be as competitive and their service not as popular.<p>[1] <a href="http://qz.com/190432/airbnb-doesnt-even-own-a-bed-but-its-backers-think-its-more-valuable-than-hyatt/" rel="nofollow">http://qz.com/190432/airbnb-doesnt-even-own-a-bed-but-its-ba...</a><p>[2] <a href="http://www.fastcompany.com/3027107/punk-meet-rock-airbnb-brian-chesky-chip-conley" rel="nofollow">http://www.fastcompany.com/3027107/punk-meet-rock-airbnb-bri...</a>
Does anyone have a good estimate on what % of AirBnB rentals are illegal (i.e. not allowed by local zoning laws) and what % are just dodging local hotel taxes?
As a comparison point, Expedia has a current market cap of $9.79bn:<p><a href="https://www.google.ca/finance?q=NASDAQ:EXPE" rel="nofollow">https://www.google.ca/finance?q=NASDAQ:EXPE</a>
I still feel like there are going to be some major regulatory changes that will eventually hit these types of businesses. What we've generally seen is cities say no, then realize how much value there is but not know what to do about it, then say yes. What we haven't seen as much is the post-yes interaction, where additional taxes and regulations get established. Should be interesting.
I’m a little confused: when Elon Musk skirts the law and dodges local concessions, most comments here argue that he is a pioneer, freeing us from evil; when AirBnB renters do, they are doing something illegal.<p>Prohibiting any rentals between one night and a month is the result of lobbying, just like automobile concessions: either Y Combinator participants considers that laws can be changed to adapt to new business models, and that the current one (in the US) are the result of business pressures or they are not. Yes, hotels are incredibly less dodgy than car salesmen -- but still ‘illegal’ shouldn’t have a different meaning on similar debate.
It doesn't surprise me at all that AirBnB is doing another round. I'm sure they want to stay as opaque as possible while the regulatory landscape settles into place. Going public would force a lot more transparency and potentially weaken their negotiating position.<p>As for people doubting their valuation and comparing it to hotels; keep in mind that hotels have no way to scale the way AirBnB does, nor can hotels cater to niche geographic areas the way AirBnB does. It is not a stretch to see AirBnB becoming the defacto start when searching for a place to stay and if that happens, hotels may find themselves subordinate to AirBnB.
why not IPO? I mean I think going public is terrifying and awful, but have to exit sometime right? if you raise at >$10B you would need to IPO at >$20B no?