The Trust Currency Lucas Brukta - Mikayla Koo - Hanna Steingrimsdottir
Contents 5 6 8 9 13 19 23 25 27 29
who we are our framework why Airbnb brand study negative impact case studies trusting airbnb our opportunity area quotes sources
hello.
who we are before we begin, we felt our first task is to define ourselves and proceed within that frame of mind
With new economies such as the sharing economy or behavioural economy emerging, companies engaging in disruptive services are immediately held at a standard of corporate transparency, positive media image and corporate social responsibility to remain successful in these new markets. Recognizing weaknesses within their CSR also invests in an upcoming consumer demographic who not only engage with corporations who address cultural and social issues but are willing to pay for these sustainable business practices. CSR is also good for the company as it often leads to an increase in business and revenue, employee engagement and improving their public image while furthering branding.
Our aim is to ďŹ nding an opportunity within an existing company participating in these areas who can improve in their CSR to propel their company toward a more successful and socially sustainable future.
medical
accessibility
food transportation property law regulations
resources accountability permission & licenses
safety
quality of
privacy
digital discrimination
hum
legal
civil
political
organization & governance
security
Our Fram
justice system tax employeement liability
economical
regulation local business housing market inflation
affordability
g
wealth distribution markets
kn p
disruption
being good life
healthy people
human sustainability
generation
man gender
tragedy of the commons ecological awareness & responsibility
identity local
equity
community
culture
discriminational bias
culture exportation
global
unique experience
mework
trust
responsibility
engagement
belonging
respect
social
gift economy
live like local
emotional sustainability
sharing economy
sharing your home
networked hospitality
nowledge trust economy platform branding image transparency
transaction based on trust
why Airbnb perhaps Airbnb is one of the most disruptive innovation - inc.com
We chose Airbnb for its undeniable impact on global scale mission to establish the social sustainability. Airbnb is the leading market that fuels globalization. It’s one of the most connected digital platform that creates relationships based on trust. Through the analysis of Airbnb’s impacts and potential, we want to design a more socially sustainable future and make meaningful experience for millions of users.
Belong Anywhere. - Airbnb Mission Statement
65,000 + cities
$1B Revenue
191 countries
history of Airbnb one of the pioneers of the sharing economy
Airbnb, a platform for short term, cost-effective accommodations for travellers, is known as one of the pioneers of the sharing economy. The online, community based platform orchestrates transactions and bookings between hosts and guests to provide unique ‘local’ travel experiences at a lower price to their hotel competitor. The founder, Brian Chesky, recognized early on the importance and difficulty of bridging trust between users to successfully coordinate the sharing of property and goods however implemented various systems to instil confidence between users for a more comfortable experience.
The sharing economy is partly successful because of its ability to instantly meet demand when needed, in instances of special events in cities, and allows hosts to offer their homes during peak times for financial gain with an equally beneficial opportunity for the guest.
Timeline of Airbnb
since the beginning
Incubated by the Y Combinator & received $20,000 funding
2007 Idea Creation
2008 Launched AirBedAnd Breakfast .com
2009 Website name becomes airbnb.com
Funding of $7.2 M
2010
2011 Reach 1 Millionth booking mark
Funding of $112 M
2012 Reaches 5 Millionth booking mark
Reaches 10 lionth book mark
Funding of $475 M
0 Milking
2014 Announces that its home cleaning trial will be in three cities
Sues New York City over a new legislation that make illegal for Airbnb to display housing units that cannot be rented legally
Received funding of $1.5 Billion
2015
Start to collect tourist tax in some cities of U.S & Europe
San Francisco vote “No� to restrict Airbnb rentals in the city
2016
Sues San Francisco over a new law that would require Airbnb to verify that their hosts are registered with the city
2017
Airbnb launches the "experiences" feature in the Airbnb app
hosts limiting accessibility
no hazard awareness accidents
security problems
breakage
decision based on digital profiling
loose tax patrol
discrim due to di
reservation cancellation Airbnb’s loose regulation
housing & property law no responsibility for Airbnb
racial bias
prone to breaking the law squatting
civil
legal issues
lack of accountability property damage
Negative
less tax contribution
less economic prosperity
city for tourists
forced to move
hotels
destabilization of local business
loss of housing
less of community
rising cost of living
hum
rent for students
disrupt post-secondary school
inflation
economical
local & global disruption
traged com restaurants
move away from cultural centre & activities
mination isruption
ecological disruption
increased tourism
lack of knowledge biological spread
selling experiences
man
culture
taking cultural activities
cultural exploitation
#we accept campaign
social washing
misleading branding
invasive species
liability based on the brand
e Impact
social
exclusionary
peer to peer
so-called trust with users lack of sharing economy transparency
liability
dy of the mmons monopolies
no opportunities for local competition
tax issues
hosts limiting accessibility
no hazard awareness accidents
security problems
breakage
decision based on digital profiling
loose tax patrol
discrim due to di
reservation cancellation Airbnb’s loose regulation
housing & property law no responsibility for Airbnb
racial bias
prone to breaking the law squatting
civil
legal issues
lack of accountability property damage
Negative
less tax contribution
less economic prosperity
city for tourists
forced to move
hotels
destabilization of local business
loss of housing
less of community
rising cost of living
hum
rent for students
disrupt post-secondary school
inflation
economical
local & global disruption
traged com restaurants
move away from cultural centre & activities
mination isruption
ecological disruption
increased tourism
lack of knowledge biological spread
selling experiences
man
culture
taking cultural activities
cultural exploitation
#we accept campaign
social washing
misleading branding
invasive species
liability based on the brand
e Impact
social
exclusionary
peer to peer
so-called trust with users lack of sharing economy transparency
liability
dy of the mmons monopolies
no opportunities for local competition
tax issues
case studies
No Support from Airbnb In the case of one L.A. Airbnb host, guests in her apartment clogged and flooded the toilet of the apartment, resulting in damage amounting to $10,000. In the aftermath of this, the host received no support from Airbnb, instead finding her claim repeatedly denied. Though the company has a “Host Guarantee� that promises up to $1 million in the event of damage, Airbnb has been notorious for denying or avoiding claims placed through their system. The company sets in place strict regulation regarding their guarantee, a move made deliberately to limit and prevent claims placed in their system.
Hazard Issues Airbnb sets no safety requirements or expectations on the hosts renting out their spaces through the platform. Instead Airbnb has been strategic in attempting to maintain their neutrality in the matter, remaining distant issues that arrive. This refusal by Airbnb to accept responsibility for their guests safety has resulted in several instances of harm, and, in the most extreme cases, death.
Forced out of the City zone - Rising cost of living Originally intended as a platform to supplement one’s income by renting out your own personal space, Airbnb has developed its own industry of land managers. With managers being responsible for possibly dozens of spaces continuously available for rent over the platform. The profitability of Airbnb has resulted in landlords prioritizing short term rentals over traditional tenants. With some landlords going as far as to evict current tenants in favor of Airbnb. This has contributed to rising rental prices in city centers, and forced people, especially lower income individuals, further out of the city core.
Tragedy of the Commons A concept derived from Garret Hardin’s 1968 article “The Tragedy of the Commons,” the idea states that without regulation and ownership over a resource, individuals have a tendency to abuse a resource. A problem found within the growing “sharing economy,” users begin to abuse and take advantage of resources for which they do not feel a sense of ownership.
Misleading Branding - Social Washing In the wake of several publicized incidents of discrimination through the platform, Airbnb has launched a campaign attempting to promote equality and distance their brand from these incidents. However, the #weaccept campaign fails to address the issue, instead acting as a cover for the company. The campaign promotes the acceptance of refugees and attempts to provide free temporary housing for refugees in need. While a noble cause, the campaign fails to address the issue of discriminatory hosts on their platform, instead just deflecting the issue and directing the conversation away from the users of their platform.
Racial Bias / Discrimination Online transactions facilitated through profiles featuring photos and bios typically lends itself to an increase in trust between users, however it equally allows for discrimination based on the host or guest’s race, age, gender or appearance. Airbnb has been noticed to charge 12% more for non black’s listings compared to black host’s despite being in similar rent gaps. This has led to a competitor site “Innclusion” using a similar platform to Airbnb but prides itself on inclusion. Airbnb is not liable for any discrimination that occurs on their platform.
trusting Airbnb
Peer to Peer Trust Looking into Airbnb’s current methods of gaining peer to peer trust
Airbnb acknowledges their platform is dependent on trust between hosts and guests for a successful experience. They have implemented a system through machine learning, risk assessment, secure platforms and a multi layer defence strategy to minimize any misrepresentation or misbehaviour between hosts and guests. However, their methods are only relevant before a guest arrives at their host’s home. From the point of arrival, Airbnb relinquishes all responsibility onto the host placing the onus of all negative repercussions onto the host with little to no support from the company is the stay.
guests
factors
impacts
misleading listings safety concerns
loss of deposit personal harm
discrimination poor environment
users bad guests hosts squatters
city
Oo
hotel industry more tourists
non-users
citizens
rentals are less profitable more tourists
social harm uncomfort while staying loss of income property damage loss of housing legal fees rising housing rates tax avoidance overlading infrastructure increased cost of living forced out of the city zone rising crime rates move away from cultural centres
results no support from Airbnb stop using Airbnb slander Airbnb on social media no support from Airbnb stop using Aibnb slander Airbnb on social media banning Airbnb restrict/ legislate the sharing economy no support from Airbnb slander Airbnb on social media
New Opportunity Guests are the core of Airbnb. Even a single bad experience, like misleading listings, can taint their perception of the platform and lose trust of the company. By strenghtening their customer support and establishing full-proof verifications of listings, Airbnb can engage with users to continuously maintain trust between Airbnb citizens. Through the creation of a new verfication program and standard, designers can strengthen the required network of trust upon which Airbnb is built.
factors guests
robust customer serivce environment verification
more transparency
impacts
results steward of trust
host & brand accountability service expansion
engaged with users
As communities become more trusting, they also become more durable -Airbnb Engineers
What makes all of that possible? Trust. - Airbnb
One ongoing challenge for us is to concretely measure trust. -Airbnb Engineers
Thank you.
Sources Brand Study Airbnbcitizen.com. (2018). How Airbnb Works. [online] Available at: https://www.airbnbcitizen.com/how-airbnb-works/ Blog.atairbnb.com. (2018). Belong Anywhere. [online] Available at: https://blog.atairbnb.com/belong-anywhere/. DMR. (2018). 100 Amazing Airbnb Statistics. [online] Available at: https://expandedramblings.com/index.php/airbnb-statistics/. Inc.com. (2018). Why Airbnb Is Disruptive Innovation and Uber Is Not. [online] Available at: https://www.inc.com/dave-bailey/why-airbnb-is-disruptive-innovation-and-uber-is-not.html. Majdal Sobeh, Author at Investment Property Tips | Mashvisor Real Estate Blog, May 2017, mashvisor.com/blog/author/sobohmajdalgmail-com/ Medium. (2018). Building for Trust – Airbnb Engineering & Data Science – Medium. [online] Available at: https://medium.com/airbnb-engineering/building-for-trust-503e9872bbbb Case Studies Bort, Julie. “Airbnb Banned From Condo Complex After Guest Caused $10,000 Of Damage.” Business Insider, 9 Oct. 2014, www.businessinsider.com/airbnb-guest-caused-10000-of-damage-2014-10. Hardin, G. 1968. “The Tragedy of the Commons”. Science 162: 1243-1248 (1968). Nate, Brian Joe. “#weaccept.” Airbnb, 5 Feb. 2017, www.airbnb.ca/weaccept?locale=en.
Rohan Gilkes “I’m a black man. Here is what happened when I tried to book on Airbnb.”,Medium, Matter, May 26, 2016, medium.com/stay-woke/i-read-about-this-phenomenon-of-black-people-being-rejected-on-airbnb-f36dd3ab0375 Stone, Zak. “Living and Dying on Airbnb.” Medium, Matter, 8 Nov. 2015, medium.com/matter/living-and-dying-on-airbnb-6bff8d600c04. Warren, May. “Toronto man says landlord evicting him to rent unit on Airbnb.” Toronto Metro, MetroNews Canada, 27 Sept. 2016, www.metronews.ca/news/toronto/2016/09/27/toronto-man-says-landlord-evicting-him-to-rent-on-airbnb.html.