Over the past few months, we’ve touched on regulation of Airbnb and the Sharing Economy. You know, governments this…city councils that…blah, blah, blah. One thing we haven’t talked about is self-regulation of the Sharing Economy.
The Sharing Economy—as well as the digital economy as a whole—is an entirely new beast when it comes to commerce. The basic principles of business still stand, but the way in which people interact, the types of people involved, their depth of involvement, and how they do business has dramatically changed.
Airbnb is suggesting that self-regulation can be a “more effective way” of addressing issues that arise in online markets than passing new legislation.
Airbnb also said that “trust is the essential currency of the collaborative economy” and that the “trust mechanisms” it deploys, which include peer-to-peer reviews, serve as “additional layers of protection” for users of its platform beyond those provided for under the law.
I think they may be onto something here. Laws can take many years to pass and a lot of hands seem to find their way into those bills. I believe a blend of traditional policy making and self-regulation will hold the best opportunity for the Sharing Economy to grow and flourish. Only time will tell how this story concludes.
Can Airbnb Unite the World?
Airbnb has done a lot to bring people together who otherwise would have never met one another. I’ve met guests from China and London while hosting and swapping stories with them was eye-opening.
When you join Airbnb as a host, you have the opportunity to make people’s travel dreams come true as well as fulfill your personal financial goals. Hosts are the lifeblood of Airbnb and only by adding more high-quality hosts will Airbnb be able to grow and exceed it’s $10B revenue expectations for 2020. Brian Chesky is quoted as saying, “This company is first and foremost about the hosts, not the guests.”
Check out this in-depth article about how Airbnb may be the tool that breaks down the barriers between us and our fellow world citizens.
P.S. Have you seen these new ads for HomeAway, they just don’t get it do they?
Support your fellow home sharing hosts and short-term rental operators by sharing this post. You will give them the knowledge they need to become the best host they can be!
This article originally debuted as an email newsletter to our Weekly Digest subscribers on 01/20/2015. If you’d like to receive our weekly newsletter featuring hosting tips, tricks, and resources please subscribe on our home page.