The thing about Airbnb and Uber is that their model is renting out other people’s stuff. A hotel has to do the capital investment to actually build a hotel, a taxi company has to invest in cars and a taxi medallion. They just had to build and maintain a website and use other people’s capital. The only reason they spend billions is in executive compensation and short term subsidising of prices to gain market share.
The thing about Airbnb and Uber is that their model is renting out other people’s stuff. A hotel has to do the capital investment to actually build a hotel, a taxi company has to invest in cars and a taxi medallion. They just had to build and maintain a website and use other people’s capital. The only reason they spend billions is in executive compensation and short term subsidising of prices to gain market share.