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by jakozaur 3458 days ago
Random idea. What if, there was AirBnB equivalent endorsed by local city letting it control rules.

Currently AirBnB do some arbitrage based on regulations: change residential zoning to hotel one.

E.g. startup does infrastructure, but let city control what going on in exchange for enforcing rules. AirBnB seems easy to crack down as almost all listing are semi-public.

1 comments

Then it would never work, ABNB works because it has these margins to play with - the cost differential between running a business and just subletting a residential property.

You don't have to pay the premium that comes with regulation, you pay lower taxes (if at all), you don't have to have special insurance, trained staff, meet stricter public safety regulation etc.

This is why ABNB works if the property owners on ABNB had to meet the same standards as a hotel or anything close to that they would be considerably more expensive than hotels because they don't do that at scale while most hotels do.