Join one replies to listen a business wars one week early and at free in the wonder, YAP down the wondering app in your apple or Google, play mobile app store. Today the may twenty seventeen in the EAST village Manhattan smartly dressed couple ducks into a building to escape the pounding rain. suitcases down the narrow brightly lit corridor of an apartment, building, checking apartment as they go here. We are. Water drips off the raincoats as they for someone to answer the door, but no one's responding, where's their air being be host. The man reaches out to knock again a clean shaven man in his thirty's opens the door. Can I help you

yes, we're here to check into our air b. The man inside the apartment looks puzzled, that's not possible. I just checked into this air Bnb when France and checks or phone checks the number on the door apartment three ass. to better and well at Haven in the EAST village yeah, but There must be some sort of mistake, well let me call the guy who checked us in high yeah. There's another couple here saying: they're booked to stay in the same apartment. We in. Someone's coming now to help. You They stand and awkward silence for a few minutes. Then a man in a blue dress. Shirt arrives, he's sweating and carrying a laminated page with a schedule of who is staying in each of the buildings units I'm so sorry about the mix up the host is away, so I'm taking care of the rentals for him. Don't

I got another apartment for you. It's just a couple of floors up, He ushers them to the elevator. The couple squeezed together in the elevator and share a smile they are thrilled. because they got somewhere to stay. Now. I don't care about that. You see they aren't tour. And the suitcases are just props. These are private. investigators conducting a sting operation to prove the host was breaking state law by running a de facto hotel, the building manager, searches through a fistful of keys for the Wrightwood sorry again about that mix up hope you enjoy you stay. once inside the woman pulls out her laptop and logs onto the wifi. I'm WI get working on a report to send to the city he grabs his phone called share better share. Better is the

anti air being be alliance, backed by hotel groups. There, the group funding sting operation- hey Peter Ryan and its in illegal hotel, I'll write the anti AIR Bnb Alliance has gone undercover to expose the startup it'll blow a hole and air be in these defence that it's just helping middle class folks make a little money on a side, hustle being being. It's not above conducting its own clandestine operation, Far from it. Business wars is supported by agone. Again. Is the payments platform built to help your business grow with agone? You can accept payments in app online, in store, touch, free and beyond, and add technology adapts to any business or industry or shopper journey.

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All you, gotta do is add streaks extension to your browser and you are ready to go right now. for a limited time, you can save twenty percent on the pro plan at st dot com, Slash be W. From wondering I'm David Brown and this business wars In the last episode, the city ruled it illegal for hosts to operate short term rentals in the city That ruling stands. It could doom AIR Bnb in New York and other cities. But it's one

thing to enact a law and another to actually enforcing the prospect, but New York City Hall, and that's what AIR B and Airbnb is banking on this episode I'll, be legal troubles snowballs so fast, it's unclear startup will survive and there's a perfect storm barreling towards them that nobody could a forecast capital running dry, and the nineteen pandemic will make a direct hit on air B, and despite these headwinds if the company is to stay afloat it has to public. This is episode. Three. The gathering storm. January twenty eighteen city, council chambers in City Hall, downtown Manhattan,

Council, member Jumaane Williams sits at a table with two colleagues Williams, Corey, Johnson and Carlino Rivera are looking for a way to keep a lid on air B and B. Johnson the stubble on his round face and looks at the newly elected Rivera dress neatly, a blazer and skirt so Duminy. We want to meet with you to get the city council low down on your be, I know, you've been very different, organizing efforts against it, we've been trying our best. Pass law after law, but that tough to enforce, given the city, strain resources and Airbus be keeps find and loopholes, Johnson looks concerned, he's a noose Speaker of the city, Council, and he has a lot riding on how this plays out This really worries me. We both campaigned on ending New York's housing crises, but the problems only getting worse Ribeiro Rep hence neighborhoods, including the EAST village, flat iron and the lower east side in Manhattan. We all now

The problem in my district it's taking rent regulated units out of the housing stock because they can get a lot more money per night on urban, be low Corey, your new speaker I say we go after them, even harder in City council, meaning pass and even stricter bill, We could do that exactly Rivera. Johnson and Williams smile, the Anti air Airbnb Alliance. Just game two new warriors may. Third, two thousand and eighteen Way station in downtown New York, a man leans against the green column and strolls through his Facebook NEWS feed one head and catches his eye. It reads New York City renters paid an extra six hundred. Sixteen million dollars thanks to air B and b to read more

city controller, says that air Airbnb has contributed to a housing shortage and that pushing rents up here. His phone, His rent has been rising had been annoyed at his landlord, but now he has some one else to blame air be in bed. Build itself is fun. to those looking for a little bit more income and a harmless asset to the city sure doesn't feel like that. His blood boils. This is bull. he navigates over to twitter and spots YO title New Yorkers not for sale, and he tapped to expand. Airbus me said they want to help New York families, but all they really do with helped themselves to billions of dollars, while statistics PA one in particular catches his eye, winning five percent of listings in black neighborhoods, are controlled by white hosts

This is not okay. each the video with a hashtag New York. Not for sale after the report? air being gets heat but a few days later he catches a break. May seventh, twenty eighteen AIR Bnb head? in San Francisco, CEO and CO founder Brian Chesky is at his desk. Checking air in these latest numbers. It's been a few days since the report came out, saying AIR B and been driving up rents. Chesky Frustrated that his team has not been able to change the narrative he had slain riot. Are you sitting? There Yes, what is it look at the link? I just sent you to the new Yorker article, Chaskey scans is overflowing inbox and opens it how

Lee Crap, it's about Eric Schneider meant New York attorney general, who, for the last few years, has made air b and B's life. Hell Are you seeing this for different and are accusing them of physical abuse right after he became a champion for them to movement. This is unbelievable. She yeah, and it could be good Ross he's going to have to resign, and then this It's going to be distracted by dealing with this mess. take the pressure off ass. Let's hope so we need a break within the Schneiderman resigns B and bees biggest opponents is now sidelined, Jude Twenty eight team, eighteen outside City Hall, downtown Manhattan. Rivera and Johnson pushed their way through dozens of angry protesters, waving signs that say, Airbus,

and be hijacked eight thousand units. Finally, in and Rivera inner City hall, with relief Jeez there so angry I could feel steam coming off of it tell me they quietly, look back outside of the protesters. Look, I've been thinking Airbus be isn't cooperating with the city. We gotta do something else. What they come up with is a bill that can be enforced. It will require a be indeed report all their listings to the office of enforcement or face it five thousand dollar fine for each violation but, most importantly it Shift the responsibility for the listings from hosts to air being b Rivera and Johnson go one step. Further AIR Bnb will have to

provide the addresses and names of hosts to the city every month and note where rentals are for a room or whole apartment, it's practically designed to make AIR Bnb go ballistic But despite air b and bees headaches with the city, it's not letting that battle keep it from forging ahead. It has greatly broadened its horizons June. Twenty team. It's a warm day in New York, a woman logs onto airbnb dot com. for a closer look at a picture of a yurt against a vivid sunset. The text next to it says not sure where to go check out exotic adventures. She scrolls down. The listings tree house in the costa rican rain forest Nick Home, built into a cave in Santorini,

front Villa in ST a country state in Tuscany and Igloo in Finland, honey I'll come here. You check this out. Together, they flipped from a photo of a palatial open plan mansion in Greece, into a rustic cottage right on the beach castle, in France wow These are awesome. Below the listing is a section called experiences in Greece, hey, what are those who would say? she's making with locals milking on a farm. Diving Expedition off the island a day trip to the Parthenon looks like your bnb is offering adventures with locals. I guess that's cool okay, I'll just make a shortlist of places to stay, and we can decide on one tonight. Air Bnb experiences are the company's new attempt at diversification and

open up the world to the adventurous traveler it now offers five thousand local experiences across sixty destinations. Things like concerts, hiking tours horseback, riding the whole endeavor. asking brainchild and even though experiences are not exactly taking off air B and B. where to spend money on the ceo swims. That's because air be turned its first profit in twenty seventeen and is now valued at around thirty billion dollars New Yorkers are using Airbnb to book exotic getaways. It doesn't change its core problem, anger, Well, being priced out of housing in the city, government is all too aware of that fact: but as the city and air and Airbnb enter the ring again, the Metals have

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June. Twenty eight. in AIR B HQ in San Francisco. Airbus CEO Brian Chesky, Chaskey, its head of public policy, Chris Lehane in trustees office there strata rising over coffee. I Chris what you get well. I ordered my team to do research into these New York politicians. The ones who want to pass this bill against US You know really dig in other pass. Chaskey nods, he's well aware. The bill, spearheaded by Johnson and Rivera it would require air, indeed a hand over a ton of data that could hamstring the company law hain keeps going. What we found is very interesting. Data shows that Politicians are getting money from the hotel lobby.

Chris, that's not a real surprise, but I'm guessing you wouldn't even bring this up unless you'd figured out a way to weaponize this. So what are you thinking We put out a report that details all the money these politicians are getting from the hotel industry. I know it doesn't come as a surprise to us, but look this can really sparked public anger, and then capitalize on that we launch attack ads against some of them. Isn't. That last bit a little below the belt is called politics behave, gets work. He disseminates a report on the amount of money New York. Politicians are getting from the hotel industry comes across as a last ditch effort. The city's bill is picking up steam. July Eighteenth, two thousand and eighteen

ski behave in a group of air being be executives, are gathered in the conference room on screen is alive feed of the New York City Council meeting on the proposal. tighten the reins on air bnb as the sold roans on the x. acts in the room, smooth Chaskey keeping a close eye on proceedings. Suddenly he snaps to attention she everyone that their voting. Watch mesmerized the anti European Bee Council member curling Rivera stands yeah next, its Johnson's turn. Yes, one by one the council members vote to limit air the passes unanimously chest His face falls, Oh God, this is bad It's almost certainly going to be passed into law

The room is silent, they know it's true. Chaskey continues, Well, come on guys what tomorrow What can we do? in response, we get to Albany again If we can't win New York at the city level, maybe we can get it overruled at the state level Chesky puts his head in his hands. He can't be believe he's back here. how much is that going to cost a lot How much is a lot La Hague pauses? we're talking millions? should sponsor a bill, saying AIR B and be will collect taxes and let's make a fat donation to some nonprofits, improve our public image. Chaskey size He knows the is right, but all this political fighting is getting expensive Airbus and gets to work on the New Battlefront Albany,

AIDS, ten million dollars to non profits for the halo effect and proactive sponsors a bill offering to collect tax from its guessed, but it is also still fighting the New York City Council bill that would require air Airbnb to police, its listings, In January, twenty nineteen AIR B and B gets a break. a judge rules. The city law violates the fourth amendment against illegal searches and seizures it's a boon at air, bnb New York city still has some leavers to pull. Early January, two thousand and nineteen city hall in downtown Manhattan, a cold wind whips across the EAST River, making it fee we can colder. May bill de Blasio Walks head down against the wind until he reaches his office, a staffer

she's a phone to his ears. He waved Blasi Blasio over bill. perfect timing. I get the special enforcement office on the phone for you. The plaza pulls off his gloves and picks up the receiver, hello, it's christian Klausner the executive director of the Office of special enforcement. It's been a week since the judge's ruling that blocked the New York City law to collect more data on AIR Bnb hosts and De Blasio. Needs fresh ammo bill about the air being scheme we uncovered during the sting operation. Yeah go on well, this entity called metropolitan. A pretty group has been unlawfully renting out. One hundred thirty Manhattan apartments through air, be indeed almost seventy six thousand guests. They all use different identities to dodge the rules Cheese that huge, how much are they making more than twenty million dollars in revenue

perfect, are we ready to serve papers? Yes, where seeking twenty million dollars in damages good Well, let me know when it's done Jos, special enforcement office finds a lawsuit against metropolitan property group. It also said is the company for data on twenty thousand hosts the New York Times Publishes an exposing on the metropolitan Property group's multi million dollar scheme at all details: how real estate speculators have been manipulating air b to make money. It's a bad look for Airbnb, which keeps trying to say that it helps middle class. New Yorkers make ends meet this. The moment. The city council has been waiting for but a massive unforeseen event, will turn everything upside down the early

when he twenty and air be call centre. In Montreal, Canada, a woman's it or computer. Then adjuster had said she works on AIR Bnb Safety team. Her job is to deal with complaints. and over the last few years, she's heard it all turning suit cases out of the window guests. discovering conceal cameras in their air, be in these gas leak sexual assault, her was to make the problem go away by spending money paying for flight hotel rooms, food counseling and hospital the phone. I myself have is Katie with her BB. How may I help you hi? This is SAM Mama hosted in New York, I'm calling because I got a guest who wants to cancel because he says he's sick, some sort of flu and he doesn't want to travel.

All right. Well, what is your properties cancellation policy? I have a strict cancellation policy, but he's insisting he says it's something called covert. Nineteen Katy from and she's been hearing about covert nineteen on the news, but she thought it was a China thing. Would you mind if I place you on a bridge hold thanks hello. This is Katie with Airbnb. How may I help you, I'm staying airbnb in ITALY, and I just got sick. The doctors told me it's covid, I'm going to need to cancel my stay, so I can corn a hospital, I'm sorry, I'm afraid that will be possible if you ve already begun your stay. Wait a minute. You you don't understand. This is a global pandemic. I can't just go back to my airbnb. I could get the next guest sick Okay, let me look into that. For you I'm going to play, a brief hold these back to back complaints, don't feel random

Katy gets up and walks over to where manager, hey I've customers calling wanting to cancel because of this covert thing. What do we do? I don't know, I haven't, received any guidance on how to handle this. I guess cancel these guests and reimburse them and we'll see what the higher ups say There is mass confusion and be seven million properties worldwide, because I haven't for the policy to deal with this virus. That seems to be popping up everywhere. Guests plain about not being able to get full refunds for bookings in quarantine cities during a pandemic. Many hosts, don't want to lose money by cutting them. A break Airbus and requires customers pre pay for their lodgings. as social distancing measures go into effect.

Travellers have already planned down more than one billion dollars in air being be reservations. The company, now in uncharted territory. and how it handles this could be a make break moment AIR Bnb, CEO Brian Chesky, drastic changes. Its cancellation policy the planned refund, guess days, booked through MID May in twenty twenty. The policy keeps guess chappie, but Infuriates property owners not to mention his board April. Twenty twenty Czeskis apartment in San Francisco, Chesky looks tired. He hasn't sleeping well and the some air being bees, declining businesses weighing heavy on him. Just he logs on and waits nervously for all attendees to join, their meetings, are now on. Zoom is the weak

but he's called an emergency board meeting to strategy eyes. Chaskey kicks things off thanks everyone winning at such short notice. I know it's a stressful time for everybody, but this is urgent. The stats be be. Cancellations hit my inbox like a bomb. In the last eight weeks we lost eight percent up just then skis screen freezes. His mouth is over both eyes shut one board member in rubs, sigh Brian. I think we lost you for a second. Can you repeat that for a moment it almost sounded, like you said, eighty percent they're, just keys base on freezes and he leaned forward Soria. Yes, I did say eighty percent eight zero, not one eight, yes, eight zero in a week's yeah, when you're in the hospitality industry during a pandemic, you're going to take a hit. So the question

What do we do about? It? Chaskey looks at the board members, who are situated in little squares on the screen? Now don't seem to be moving. Their faces are still lifes of fear and concern now you guys are frozen nowhere, we're not frozen. I think we're all just in shock in trying to figure out what to say. Ellison Brian personally I gotta say I'm angry. You change the reef on policy without consulting us. Just scheme would stand I am sorry, but this is a whole different game. Now I did what I felt needed to be done to keep our guests happy. We can't afford a backlash from our hosts well now look where we are former American

Brass Co. Ceo Kenneth Shannara, interrupts. Look. If I may, I think we need to focus on next steps, not what has already been done. Brian is right. This is going to be bigger than nine eleven and the two thousand and eight recession combined Brian. This is your defining moment as a leader in order to survive, air Bnb needs to cut costs with job cuts, with job cuts budget cuts anything and everything. Then we raise more money that way. Air Bnb can stay afloat while this pandemic passes in the next few months. The angry. Board member jumps in you going to raise money in a market like this. Everything is so volatile right now I don't know we're going to have to try. I think cutting costs is our best bet.

Hopefully, revenues will recover by the second half of two thousand and twenty. So what do other people think what happens if the pandemic last much longer than we expect? What happens if revenues don't return in the second half of the year, Jesse puts his head his hands we'll cross that bridge. If and when we come to it, a few weeks later ascii lays off twenty five percent of air and B's workforce. It cancels eight hundred million dollars in marketing spending the company don't know if this is a fix or a band aid AIR Bnb is no longer fighting to best New York's government for his life. You know the end of the day. Your customer has to be at the center of everything you do, and that starts with the right customer data strategy, plus the right

Foundation to solve the challenges that typically inhibit success like data quality data governance and connectivity. Our sponsor Impartial is your real time. Customer data infrastructure and they're going to help. You accelerate your data strategy by cleansing living and integrating your customer data from anywhere to anywhere. Ultimately, better data leads to better decisions. Better customer experiences and better outcomes see why the best and choose in particle, go to W W w dot in particle dot com. May twenty twenty New York, a woman sits at a desk resume call airpods

snug in her ears. Next room. Her husband responds to a slack message. She she's Also, she gazes out open window tree he's been in the breeze and smell hyacinth, they are the thousands fleeing their apartments in search of space both indoors and out they ve been homes in the suburbs or even the countryside to ride out the pandemic and air being has made that possible hey honey, I'm going to take the dog out quickly and then I got to one p m when presses meudon, fixer camera off quickly sounds good I'll, be office colony. Few hey to make lunch with the stuff we got at the farmers market? sounds awesome. They might not be I bars here, but that farmers market rules. The transition to country living has been easier than they expected. did subways grocery store lines. Dense apartment blocks their great

for the fresh air and ice It walks by the way I was thinking, we should extend our booking through the fall Who knows how long this pandemic will last and it's supposed to be beautiful? It's that time of year he smiles sure that's fine, I'm in no rush to get back to the city, there just two of the thousands of new Yorkers who fled the city at the outbreak of the pandemic. And professionals like them took the opportunity to work from home. Someone else's home, preferably driving distance from their city dwellings. The process, you're bookings for entire homes rather than single rooms, goes up as does the length of stays, and that gives company a much needed lifeline, miraculously they resuscitate air BNP

by July guests book stays at the same rate as they had been just before the pandemic. These bookings, coupled with targeted budget cuts begin to work. Company is right. It itself. Chest watches the turnaround with a massive sense of relief. Now As just one more item on his checklist. Raise money lots of in India. number twenty twenty air being he goes. Public scores, one of the biggest first day stock rallies on record each founder. is now worth more than ten billion dollars. it's a huge win for AIR Bnb and its investors they've gotten rich

though many would argue they did this at the expense of people in neighborhoods, where housing was already scarce and expensive January. Twenty two, One Jesse's home in San Francisco: he is still working remotely like much of his workforce. since the IP. Oh, he can't resist the giddy impulse to keep checking the stock price. He smiles its trading at around one hundred and fifty dollars a share is considering it started trading it half their air being bees Unable to turn its business around, but he El hasn't figured out how to translate this momentum. And getting New York City behind him, the Crystal Hain, Air being bees head of public policy Haber, I and you see the stock price Chaskey chuckles who

yeah, I'm still busied myself. We pulled off quite a turn around there, hey speaking at turnarounds. Let's talk about New York. Ok New York has been hit hard by the pandemic. Ripe tourism has gone down the drain where over the shock of the pandemic, vaccines are gonna, be rolling out soon, and I think that means that governments going to be an hour tail again. We, had a little break. I know, but I expect the New York City Council is going to be back in session soon and when that happens, they'll be all over us again yeah. I guess you're right, would be the perfect time to make a pre emptive step exactly. I just think we have an opportunity here. I say we work on a report that explains how air be it be. Can help New York cities, financial recovery,

love it? Let's call it air B and B in New York's recovery should be synonymous the anti European Bee Council members. Don't quite see it that way. particularly it Rivera and answered Johnson. They intend a tame air being be and what they come up with is a bill. It's tough on the hosts now hosts have to register with the city and Sir fi that they are the owner or tenant. they also have to confirm the areas in the dwelling will be rented and at home It doesn't violate any laws, including the building's bylaws, but there's one hitch Mayor De Blasio was expected to sign it into law, but he leaves office before he does and that, throws a major wrench in the city. Council's plans

in January, twenty twenty two, a new mayor, takes office as of February Twenty two married Eric Adams has yet to sign the bill. If he does it'll take twelve months for it to go into action plenty of time for new, unexpected curveballs to be loved by both sides, Today Airbus and be remains in limbo regarding the illegal short term, rentals on its side and thousands of air being bees in New York and around the world, are still operating in a legal gray zone, A clear winner in the battle of AIR B and b versus N Y C, yet Air Bnb has come a long way from a website to rent out an air mattress in someone's home. It's made it possible. For travellers to stay in homes and unique places around the world, not just in city

With hotels nowadays, Is it just common place to book an Airbnb as a hotel? In fact, hard to imagine a time before air being B the pandemic has proven be in these also changed. How we work in May. In the future it will become commonplace to work while traveling year Round asking himself bound to work and stay in a different city for two weeks. At a time in twenty twenty two today, air B and be as a huge, publicly traded corporation valued at one hundred nine billion dollars evangelists It is the most successful enterprise of the sharing economy. though, as we ve learned plenty of air, be in these, are about home, sharing at all chaskey, with the help of the pandemic, the chief, what he set out to do when he hit a speed bump in the big apple

air, be so popular and so big that even a city as powerful as New York can't turn off its lights. The. next week on business wars. We round out our season on AIR Bnp versus New York City with Sir the writer Natalie Robot, mad and Olivia Corvo tech Rapporteur for Bloomberg, we're going in after AIR B and crisis response team and the incidents they've kept under wraps. That is, until Olivia and her team brought them to light in an explosive investigation. It's an so you won't want to miss if you like. show please give us a five star rating and a review and be sure to tell your friends the neck. Episode will be out in a week which you can listen to it right now, ad free by joining, wonder plus in the one area

follow the show on Amazon, music, apple pie and the wonder, rehab every you're listening right now in the episode. note you'll, find some links and offers from our sponsors. Please support them. Another where you can All this shows by filling out a survey at wondering dot com, slash survey. from wondering. This is episode three of air being deeper, is New York City for business wars. Quickness that recreations you've been hearing in most case We can't know exactly what was said: the scenes of drama decisions, but their based on historical research. I'm your host, David Brown, Natalie Rubber, wrote this story. Voice by by Michel, Philippine ACE Anderson, Karen low is our senior producer. It editor edited and produced by Emily Frost, sound designed by Kyle Randal our producers

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