Airbnb wants to give a homeowners who energy a use a event to possess a square of a business. That’s why, as Axios reports, a $31-billion-valued association has created to a SEC to ask if a manners around confidence tenure can be revised.
Specifically, Airbnb is seeking a change to a SEC’s Rule 701 — that governs tenure of equity in companies — to concede a new kind of shareholder category for workers who attend in gig economy companies and their services. Uber, for one, has met with a SEC to introduce a identical stipend yet Airbnb’s evidence is laid out in a minute that we can review here (thanks to Axios.)
“As a pity economy marketplace, Airbnb succeeds when these hosts succeed,” a association wrote in one passage. “We trust that enabling private companies to extend hosts and other pity economy participants equity in a association from an progressing theatre would serve align incentives between such companies and their pity economy participants to a advantage of both.”
While it isn’t transparent how earning equity competence work for an Airbnb horde — or an Uber or Lyft driver, for that matter — serve amendment of manners would be required. Currently, SEC regulations need that any private association with over 2,000 shareholders or 500 or some-more who are not U.S. accredited investors, contingency be registered.
That’s clearly a problem for Airbnb that has grown to some-more than 5 million listings given a substructure in 2008. It stays to be seen how many of those homeowners could possess equity even were a manners nice to concede it. More generally, though, gig economy startups won’t pursue a equity options for contractors if doing so afterwards triggers imperative SEC stating while they are private entities.
Then there are additional complications for businesses that have stretched outward of a U.S. market. Most of Airbnb’s are located abroad — a use claims to offer lodgings opposite some 81,000 cities in over 190 countries — that creates handing out U.S-based equity tricky.
Still, Airbnb’s open acknowledgment of a hosts and a essential purpose they play is a certain partial of that relationship. That’s something rare, for sure.
Most of a contention around a purpose between marketplace provider and gig economy workman has been negative, with Uber in sold penetrating to heed between executive and association staff.
While this complicated take on working gives those who select it a grade of coherence like never before, they are left though a customary perks of being a required employee, such as paid vacation, benefits, overtime, health word and more. A slew of startups have sprouted to assistance cover some of those gaps, yet their solutions all come at a cost to a worker, many of whom are already financially stretched.