Uber and Airbnb do not own cars and hotels. Rather, they are profiting from what they know about consumers and dead capital. Before the rise of Uber there were many people who needed rides but were unable to efficiently contact nearby strangers who would be willing to give them a ride in exchange for a fee. In a similar fashion, Airbnb connects travelers in strange cities to the hundreds of nearby homeowners who have spare bedrooms. Before companies like Airbnb travelers faced significant costs if they wanted to spend their holiday living in a native’s spare room. In almost every circumstance, booking a hotel or hostel room was more cost-effective and reliable. Now, finding people who want to give you a place to sleep is just a few clicks away.
Monday, February 1, 2016
Should we eliminate the middlemen?
Forbes answers with a resounding "no!" --because they move assets to higher-valued uses.