April 28, 2014 0 Comments
The price of disruption
Last week, TPG, Dragoneer Investment Group, Sequoia Capital and T. Rowe Price Group Inc. invested more than $450 million in home-rental company Airbnb. The round values Airbnb at around $10 billion, making it one of the most valuable startups in the world.
Airbnb is currently facing off with New York Attorney General Eric Schneiderman who claims the service is illegally subletting and creating pseudo-hotels. Airbnb, which has 300,000 listings in more than 190 countries, including 30,000 in New York, said that it aims to start collecting taxes from renters on behalf of hosts in New York, San Francisco and other major cities to follow city regulations.
Although major hoteliers may play down the threat of Airbnb, the fact remains that the startup has begun taking share from their industry. And with $776.40 million in total funding, Airbnb has the ammunition to battle with the powers that be and further disrupt the multibillion-dollar hospitality industry.
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