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by scarface74
1368 days ago
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Those taxi companies that are their “for the poor” routinely wouldn’t go into “poor” neighborhoods or pick minorities up. https://www.washingtonpost.com/posteverything/wp/2015/07/23/... If a company could bootstrap their company and grow organically, they wouldn’t need VC funding. By definition any company that is using VC funding is pricing their product less than it takes to make it - ie “price dumping”. There are already laws about zoning that should keep AirBnB in check. I’m doing the digital nomad thing starting next year. I am specifically avoiding AirBnbs and staying in hotels - mostly mid range extended stays. |
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There's no reason to replace an already poor service with one that's even worse and requires a smartphone and a bank account, which adds a further layer of discrimination as about 5% of US households don't even have a bank account, much less a credit card, and 24-13% of poorer classes don't have a smartphone [2].
In contrast, a taxi can (at least by law) be used by anyone with cash, and the data about your travel is not available for police or anyone else to abuse [3].
> By definition any company that is using VC funding is pricing their product less than it takes to make it - ie “price dumping”.
IMO, there's a difference between using VC money to provide funds for growth (aka, a high-risk loan) and using VC money to intentionally provide a service at below-cost - five euros for half a hour taxi ride is not sustainable, it won't even pay for the working time of the driver.
> There are already laws about zoning that should keep AirBnB in check.
Yes, now after years and years of issues and complaints. AirBnB could only grow as large as it did by following the "better ask for forgiveness than permission" lifestyle and blatantly breaking all kinds of laws.
[1] https://www.fdic.gov/analysis/household-survey/index.html
[2] https://www.pewresearch.org/fact-tank/2021/06/22/digital-div...
[3] https://www.vice.com/en/article/mbqq7y/is-uber-doing-enough-...