Airbnb did not establish this business model. That was done by VRBO. Airbnb had an app (instead of just a website), looked much nicer (in my opinion) and suspect was easier to use particularly by the hosts.
Your offering is Airbnb but cheaper. It is possible that it can work (the market seems large enough that there could be room for three competitors), but I would suggest trying to understand why Airbnb charges 17% while still losing money. Are they simply inefficient operators or are there hidden costs that you haven't been thinking about. Also, talking to hosts about what aspects they do not like about Airbnb (other than price) is likely a good idea.
Also, I would suggest making it easy for hosts to list / operate their properties on Airbnb, VRBO and your system (if that is possible - I'm not certain if exclusivity is needed). If you can beat Airbnb at this, then you will automatically create a market for your system and can eventually start eating away at VRBO / Airbnb market share. Basically, commoditize the space and be the lowest cost participant. Just some thoughts.
Yes, but high risk in a different way. Airbnb was high risk because it was a largely unproven business model. Nomad is high risk because it is entering a very crowded market without a killer feature.
Funding: Cereal sales; Y Combinator incubator
Amount raised: $30,000 from cereal; $20,000 from Y Combinator
Launched: August 2008
> Months later, the AirbnB team was accepted by the Y Combinator incubator, which gave them three months of support and training and an additional $20,000 to fly to New York -- their biggest market at the time -- to meet users, throw launch parties and promote the site. By the time they exited the incubator and presented their project to investors, AirBnB was profitable. In return, Y Combinator took an equity stake in the company. AirBnB's founders won't say exactly how much they gave up, but Y Combinator's typical deals involve a 2% to 10% stake.
The business model was valid before YC noticed them and they were profitable when they left after the incubator.
osigurdson|3 years ago
Your offering is Airbnb but cheaper. It is possible that it can work (the market seems large enough that there could be room for three competitors), but I would suggest trying to understand why Airbnb charges 17% while still losing money. Are they simply inefficient operators or are there hidden costs that you haven't been thinking about. Also, talking to hosts about what aspects they do not like about Airbnb (other than price) is likely a good idea.
Also, I would suggest making it easy for hosts to list / operate their properties on Airbnb, VRBO and your system (if that is possible - I'm not certain if exclusivity is needed). If you can beat Airbnb at this, then you will automatically create a market for your system and can eventually start eating away at VRBO / Airbnb market share. Basically, commoditize the space and be the lowest cost participant. Just some thoughts.
postingawayonhn|3 years ago
shagie|3 years ago
The business model was valid before YC noticed them and they were profitable when they left after the incubator.