Denny’s Daily Zinger: 2 Online Upstarts Threaten 2 Entrenched Industries With Big Time Blowback
The two online upstarts are:
You're standing in the rain watching full taxicabs whiz by in any of 131 cities in 36 countries. You can use the Uber app on your smartphone to call for a driver and track the car's progress until it pulls up next to you.
The system has caught on. On June 6, 2014 the company was valued at $18 billion.
However, the taxi and limo industry—all heavily regulated worldwide—are going ballistic. All over Europe angry cabbies protested by staging strikes and horrific traffic snarls.
• Airbnb.com Homeowners and apartment dwellers in 33,000 cities in 190 countries have turned spare rooms into guest quarters for travelers who want to save a buck.
Founded by Nathan Blecharczyk, Brian Chesky and Joe Gebbia—all in their early 30s, Airbnb is valued at $10 billion.
But like Uber, the four-year-old company is getting into serious legal blowback from the heavily regulated, taxed and well-funded hotel industry and the regulators (e.g., attorneys general).
Takeaways to Consider
- If you plan on circumventing industries that are booming, you need deep pockets and a cast iron stomach.
- On June 25, 2014 the Supreme Court shot down the Aereo.com business model for violation of copyright. A chance exists these newly-minted uber.com and airbnb.com billionaires might also someday be worth bupkis.
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