The Power of Stupid Apps and Changing the World: Airbnb, Uber, and the Internet Revolution

The Power of Stupid Apps and Changing the World: Airbnb, Uber, and the Internet Revolution

When Facebook, Twitter, Reddit, and the Internet itself first emerged, many people dismissed them as incremental or trivial advancements. Little did they know that these "stupid apps" would go on to change the world. This is because the value of a network grows exponentially as the number of nodes increases. If users truly love what you're building and engage with it as an important part of their daily lives, and if interesting new behaviors continue to emerge as you grow, then you should keep working on it.

There are two time-tested strategies to change the world with technology. One is to build something that some people love but most people think is a toy. This was the case with Facebook and Twitter. They were initially seen as platforms for sharing mundane details of people's lives. However, they quickly evolved into powerful tools for communication, networking, and social change. The other strategy is to be hyperambitious and start a company that disrupts traditional industries, such as an electric car company or a rocket company. Elon Musk's Tesla and SpaceX are prime examples of this.

Two pieces of advice can be derived from these observations. First, don't claim you're changing the world until you've actually done it. Many startups and entrepreneurs make grandiose claims about their potential impact, but fail to deliver on their promises. It's better to let your actions speak for themselves. Second, ignore the haters and work on whatever you find interesting. Internet commenters and journalists who dismiss your work as insignificant are likely not building anything themselves. Stay focused on your passion and let the results speak for themselves.

Now let's shift our focus to Airbnb and the internet revolution. One of the most significant impacts of Airbnb is the commoditization of trust. Trust is a crucial factor for both travelers and hosts when it comes to accommodation. Hotels used to have a significant advantage in this regard, but Airbnb has leveled the playing field. By building a platform that fosters trust between hosts and travelers, Airbnb has created a new set of criteria for competition, including convenience, cost, and environmental factors.

The rise of factories and cities during the Industrial Revolution concentrated both power and people in one place. However, this led to a loss of shared mores and a need for regulation. We as a society were incapable of regulating ourselves and each other. Trust and a sense of belonging were displaced by mass-produced and impersonal travel experiences. We stopped trusting each other, and this essential aspect of community was lost.

What makes Airbnb and other sharing economy startups successful is not just the convenience of mobile access to the internet and location data. Equally important is the systematization and commodification of trust. Platforms like eBay pioneered this mechanic, but mobile technology made it exponentially more powerful. Now, every house in every city in the world can potentially become a place to stay.

This commodification of trust has enormous implications for the infrastructure of modern society. Sectors like hotels, whose primary differentiator was trust, now face fierce competition from homestays. The regulatory state dedicated to enforcing trust in these traditional industries is also being challenged. The sharing economy, with its commodified trust, has the potential to render much of this infrastructure and regulation obsolete.

In conclusion, the power of "stupid apps" and the internet revolution cannot be underestimated. What may seem insignificant or trivial at first can evolve into something that changes the world. The commoditization of trust, as exemplified by platforms like Airbnb and Uber, has disrupted traditional industries and challenged the need for certain aspects of our current infrastructure. To harness the potential of technology and drive meaningful change, we should focus on building something that people love, ignore the naysayers, and prioritize the systematization of trust.

Actionable advice:

1. Start small and focus on building a product or service that resonates with a niche audience. Don't worry about widespread adoption initially; instead, concentrate on creating a passionate user base.
2. Embrace your interests and work on projects that genuinely excite you. Don't be deterred by those who dismiss your work as insignificant. Follow your passion and let the results speak for themselves.
3. Consider the commoditization of trust as a potential avenue for disruption. Look for ways to build platforms or services that facilitate trust between individuals, as this can have far-reaching effects on various industries.

Remember, the world can be changed by seemingly trivial innovations. It's up to us to recognize their potential and take action.