Why Airbnb’s IPO Will Outdo Uber and Lyft
Not all sharing-economy firms are created equal.
Airbnb is selling some extraordinary stuff.
Source: AirbnbThe sharing economy is facing the ultimate test in 2019 with a raft of initial public offerings. Even after Uber's recovery, there remain serious doubts not only about the future of those businesses, but also of the entire sector. Should wise investors avoid the soon-to-IPO Airbnb and publicly-traded Expedia Group, which gets about 10% of its revenue from its fast-growing HomeAway-VRBO subsidiary?
Not all segments of the sharing economy are created equal. One benefits from a strong foundation. The other is chugging uphill, hoping not to stall. The contrast is clearest in five major areas.
A car ride is a utility, a barely tolerable way to get from point A to point B. There are no Rolls Royce Ubers or Lamborghini Lyfts, just anonymous sedans and SUV’s that, if you are lucky, are carrying a room-temperature bottle of water just for you.