According to the Wall Street Journal, Uber, the on demand car service start-up, has received bids in the realm of $17 billion over recent weeks. At this time last year, it was valued at $3.5 billion (~385% YTD growth in value).
To the disdain of taxi drivers, Uber created an cheaper "UberX" option, which "connects users with drivers willing to offer rides in their personal vehicles without commercial registration."Similarly, Airbnb facilitates short-term property renting, so travelers can enjoy the comforts of home
while still living the tourist lifestyle in the streets of their
holiday destinations.
It is interesting to note the number of (currently) successful
start-ups which attempt to help individuals utilize "idle" consumption goods for additional income. Historically, some "necessary" consumption goods like households and cars appeared to have a sunk cost when not in use - if a family decides to go on vacation for two weeks, it has been thought that not much could be done to earn marginal income from the home or their personal vehicle. However, thanks to the power of the Internet and the technological revolution, it seems like that may change in the near future. However, while Airbnb and Uber both share the characteristic of utilizing "idle" consumption goods as a means for extra cash, they both also face the challenge of dealing with lobbying against such behavior. See here and here.
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