Thursday 30 July, 2020 TOP STORY Apple threatens to drop Airbnb from App Store Apple has threatened Airbnb with removal from the App Store unless it complies with its demands to charge a 30 per cent commission on its online experiences and classes. If you missed our last newsletter....
1. UK government reimposes quarantine order for returnees from Spain 2. International travel confidence set to return in 2021 3. Hidalgo vows to hold Paris Airbnb referendum this year 4. Join our LinkedIn group here 5. Miami Beach loses rental restriction appeal
Editor's comment
30•07•20 Welcome to the latest ShortTermRentalz newsletter!
• Amid all of the talk of second waves, something that may have escaped your attention this week was the virtual antitrust hearing at Capitol Hill, in which the CEOs of Apple, Amazon, Google and Facebook were interrogated about whether their companies are becoming too powerful, as Apple threatens to remove Airbnb from its App Store over a contentious 30 per cent commission.
The matter relates to Apple ordering both Airbnb and live on-demand workout platform ClassPass to pay a 30 per cent commission on their online experiences and classes [which Airbnb launched earlier this year]. Both firms have complained about Apple's "capricious enforcement" of its commission demands and have contacted congressional lawmakers to investigate, although Apple said its 2010 guidelines entitle it to a sizeable portion of online sales revenue.
Airbnb, which charges a 20 per cent commission for its experiences, would surely be loath to lose its place in the App Store as it pushes its latest initiative. CEO Brian Chesky recently called it Airbnb's "fastest growing product ever" but that would be in severe doubt if it lost access to 900 million iPhone users and 500 million visitors from 175 countries, given it has been a key revenue driver during this tumultuous period.
Chesky sees the online experiences as an important opportunity for Airbnb to "go back to its roots" by connecting with guests and attracting new ones, as well as providing a unique product that no one can get anywhere else. Any business whose app is taken out of the App Store can no longer gain new users nor update existing phone apps, which would prove a large obstacle for Airbnb expanding its global reach.
The hearing may also have implications on Google's move into the vacation rental space, as it debuted its gateway feature in Google Search to rentals last year. As CEO Sundar Pichai batted away questions about "stealing content from honest businesses", it will be interesting to see if the multinational tech companies are regulated as a result to limit their power, and how this will impact on the vacation rental space.
• Don't forget to register for the next in our Urban Living webinar series, which takes place on Wednesday 5 August, at 14:00 BST, when the panel will be discussing the unknown GDV [Gross Development Value] and its impact on funding new development projects.
Joining guest host Beth Fisher, editor, Bridging & Commercial and Development Finance Today, will be: • Emma Burke, Deal Origination, Maslow Capital LLP • Andrew Hosford, managing director, Pure Structured Finance • Russell Kett, chairman, HVS, London • Patrick Smith, investment director, Frogmore
Click here to register for the no cost webinar.
If you have a story you want us to tell the industry, please click here and get involved with the community by joining our ShortTermRentalz LinkedIn group here.
Paul Stevens, news editor
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