Guest: a traveler who chooses a room to stay. AirBnB pays owners directly and gets a small commission from each booking.
Host: owns a property like room, apartment or house and is willing to rent the available space to make extra money.
Result: tons of lawsuits that lasted for 2 years and new security and insurance policies. Users spoiled inventory in rented apartments and robbed the hosts. In 2012 AirBnB faced reputational damage. AirBnB reached its 1st million rentals through the platform in 1 year and launched in 89 countries. The founders raise $600k in a month and use their service to save on apartment rentals. Result: $30k raised in flakes sales(yup, these were expensive because of relevant branding) invested these in ads, got noticed by Y-Combinator’s Paul Graham. And pitching investors on a paper banner. Result: 8 website versions, tens of presentations, 20 credit cards in a negative balance, and 0 perspectives.Īt Democratic Party Convention in Denver, guys started selling flakes branded with Obama and Maccain images. The idea sounded awesome on paper, though most investors rejected them because their hypothesis based on experience with 3 customers. Their first client was a designer who liked the idea and helped design a pitch deck for investors. One day guys found themselves lacking money to pay the rent.ĭuring a large design conference in town, they quickly built a landing page, bought a few inflatable mattresses and sold the sleeping spots cheaper than a hotel rate.
And this one is incredible.Ģ roommates in San Francisco started air Bread and Breakfast (yup, that’s what AirBnB stands for). Behind every great business, there’s a story.
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