Are the Sharing Economy and the Maker Economy Here to Stay?
The average room price on Airbnb is $140/day at present in the US. Airbnb profits are from the 3 % booking fee charged on landlords and 6–12 % service fee charged on tenants. Other income includes cancellation fee and service fee for providing bedding.
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Are the Sharing Economy and the Maker Economy Here to Stay?
Readers Guide • The average room price on Airbnb is $140/day at present in the US. Airbnb profits are from the 3 % booking fee charged on landlords and 6–12 % service fee charged on tenants. Other income includes cancellation fee and service fee for providing bedding. • Concern over WeWork is two-fold: one on the rationality of the business model of WeWork and the other from investors’ expectations and positioning. Its sustainability depends on whether the concept of co-working can provide stable dividends for members of business starters circle. Airbnb is a typical representative of the new home sharing economy. Three things account for its popularity. The first is the rapid development of the internet and mobile internet. The second goes to the prosperity of the hotel market in the US. There are undoubtedly websites providing hotel searching, but hotels are usually located in larger cities and fail to provide differentiated service. Family hotels can better meet the demands of leisure tourists such as backpackers. The third reason is the economic crisis in 2008 that made people eager to make money from their homes. The value of Airbnb soared with the application of shared economy and the social element of Facebook to achieve mutual trust among landlords and tenants who can interact and evaluate one another. So far acceptance of the new business is positive with nearly or even more than 50 % of the population in developed countries involved in shared economy, 39 % in the US, 41 % in the UK, and 52 % in Canada, WeWork is a typical youth service office provider. As a real estate company in the co-working renting market, its annual sales income in 2014 is $0.15 billion with profits close to 30 %. As an estimated $6 billion company, WeWork takes the lead in rapidly adding new members and accumulating resources from online social products and offline hard power.
© Xiamen University Press and Springer Science+Business Media Singapore 2016 S. Ba and X. Yang, “Internet Plus” Pathways to the Transformation of China’s Property Sector, DOI 10.1007/978-981-10-1699-8_10
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10 Are the Sharing Economy and the Maker Economy Here to Stay?
10.1 Airbnb: A Benchmark for Home Sharing Economy • Airbnb inspiration came from Joe Gebbia and Brian Chesky, two graduates from Rhode Island School of Design. In 2007, during a conference among the design community in San Francisco, they decided to rent airbeds to participants who failed to book a hotel room so they can use airbeds and share hotel costs with others. Soon they realized the great market potential and promptly put Airbnb into operation online in 2008. Like other C2C searching, home owners uploaded photos of their homes which were fairly confusing. The company virtually stopped growing after the first round of seed money was gone. A decision was made in 2009. The company rented a professional camera in New York and began to take photos house by house to replace all the old pictures. Immediately the weekly sales
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