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5 Major Reasons Why Airbnb Failed In Nigeria And Uber Succeeded (PHOTOS) by TechCapon(m): 8:05am On May 23, 2019
TechCapon



First of all, before I say anything, I’ll like to start by explaining what Airbnb is all about. Lots of people in Nigeria don’t even know what Airbnb is and the ones who know don’t even know its in Nigeria. So, the big question is “What is Airbnb?”

The easiest way to explain Airbnb is just to call it the Uber of houses. The same way people use their private cars to signup on Uber, Lyft or Taxify services in order to earn an income, that’s exactly the way people rent out their houses on short terms using Airbnb. Airbnb is a marketplace that allows people to rent affordable but nice accommodation for a short period of time. It has really become very popular around the world to the point that hotel owners are protesting heavily in some countries due to lack of customers because of cheaper accommodations on Airbnb.



Even though Airbnb has been in Nigeria for a long while, it has failed to enjoy the same attention and popularity which is given to Uber. If you go to South Africa, almost everyone in Cape Town and Johannesburg is turning their homes to Airbnb. The level of penetration is very deep in SouthAfrica but in Nigeria is a different story.

Below are some of the reasons Airbnb failed to attract the same success as Uber

Number one: EXORBITANT PRICE:



While browsing through the website I noticed that all of the listings are in dollars and not in Naira. That already rings a warning bell in heart of an average Nigerian that its a service strictly for the rich.

This is not supposed to be so but considering the fact that Airbnb is designed to be cheaper than hotels of the same living standard. Our currency is badly devaluated, that makes it looks expensive already. Considering the fact that one Airbnb which cost $45 per night is approximately N16,200. Not only that, there are also additional charges involved. There are cheaper hotel rooms available for less than the amount and are still comfortable. Airbnb is supposed to be cheaper than hotels but in this case, the opposite seems to be the norm.

I think they should change their listings to naira instead of dollars, maybe it will attract more attention.

5 Likes 2 Shares

Re: 5 Major Reasons Why Airbnb Failed In Nigeria And Uber Succeeded (PHOTOS) by TechCapon(m): 8:06am On May 23, 2019
TechCapon

Number 2:VERY FEW LOCATIONS



I saw a very limited location available while going through the website. Currently, Airbnb only operates in Lagos and Abuja (I’m not very sure yet) and from what I saw, the available apartments are all in the high-class areas of Lekki, VGC, Ikeja, Ikoyi, Magodo, Victoria Island and so on. So if you want to stay you only have those limited options.

Number 3: SECURITY CHALLENGES



Probably the worst challenge of them all. Looking at the high crime rate in the country, many people are afraid of listing their homes on the service. Mainly because they’re completely scared of bringing total strangers into their homes. Despite the company verifying the guests. There are still numerous bad incidents going on between hosts and guests of Airbnb all over the world. You don’t know if the person is a kidnapper, armed robber, yahoo boy, ritualist, rapist, murderer etc. This has made people stay avoid service in Nigeria.

Number 4:STRICTLY NOT A BUSINESS FOR THE AVERAGE NIGERIAN



Looking at the pictures of tastefully furnished apartments on display on the website. You’ll know that Airbnb is not a business an average man in Nigeria can venture into. Where will he get the money for expensive furniture, electronics, air conditions, carpets, duvets and so on to meet the standard? Where will he get money to rent and furnish apartments in Ikoyi, Lekki, Victoria Island, VGC and so on? To venture into this business you must be comfortable already in order to get this kind of apartment? The reason Uber is successful is that it made it such that average people can participate with their own affordable cars.

Number 5:LACK OF AWARENESS

Remember I started this article complaining of how many Nigerians don’t even know the service even exists in the first place. There’s no form of awareness. No effective marketing programs going on to let the people know of this new service in town. For every 100 persons in Nigeria who know about Uber. Only 10 of them know about Airbnb and only 5 knows that they’re in Nigeria. That’s pretty bad.

SOURCE:https://techcapon.com/problems-with-airbnb-in-nigeria-and-why-the-service-is-not-as-popular-as-uber/

Mynd44
dominique

6 Likes 3 Shares

Re: 5 Major Reasons Why Airbnb Failed In Nigeria And Uber Succeeded (PHOTOS) by TechCapon(m): 8:07am On May 23, 2019
The company should restrategize and embark on massive advertising grin

1 Like

Re: 5 Major Reasons Why Airbnb Failed In Nigeria And Uber Succeeded (PHOTOS) by berbs: 8:15am On May 23, 2019
Maybe they should just upload the Naira price instead of using dollar. That would save people from the headache of having to convert to naira every now and then. My thought though

1 Like

Re: 5 Major Reasons Why Airbnb Failed In Nigeria And Uber Succeeded (PHOTOS) by TechCapon(m): 8:19am On May 23, 2019
berbs:
Maybe they should just upload the Naira price instead of using dollar. That would save people from the headache of having to convert to naira every now and then. My thought though
That's the first issue I noticed when I opened the site. Funny enough, there are still other hidden charges attached to the main price also in dollars.
Re: 5 Major Reasons Why Airbnb Failed In Nigeria And Uber Succeeded (PHOTOS) by MJBOLT: 8:20am On May 23, 2019
even if they do that,it wont help them get more customers due to security issues in nigeria

berbs:
Maybe they should just upload the Naira price instead of using dollar. That would save people from the headache of having to convert to naira every now and then. My thought though

5 Likes

Re: 5 Major Reasons Why Airbnb Failed In Nigeria And Uber Succeeded (PHOTOS) by berbs: 8:25am On May 23, 2019
TechCapon:
That's the first issue I noticed when I opened the site. Funny enough, there are still other hidden charges attached to the main price also in dollars.
Imagine that!!! angry
Re: 5 Major Reasons Why Airbnb Failed In Nigeria And Uber Succeeded (PHOTOS) by TechCapon(m): 9:16am On May 23, 2019
berbs:

Imagine that!!! angry
I tell you
Re: 5 Major Reasons Why Airbnb Failed In Nigeria And Uber Succeeded (PHOTOS) by Nobody: 10:27am On May 23, 2019
The only problem they have is the price/pricing.

As long as it is more expensive than hotels, they have to forget it

2 Likes

Re: 5 Major Reasons Why Airbnb Failed In Nigeria And Uber Succeeded (PHOTOS) by abdeiz(m): 10:30am On May 23, 2019
They need to go sit down and rethink their strategy for Nigeria. We are a peculiar place to do business.

2 Likes 1 Share

Re: 5 Major Reasons Why Airbnb Failed In Nigeria And Uber Succeeded (PHOTOS) by donsheva: 10:32am On May 23, 2019
I didn’t even know they have made an entrance to he Nigerian market. Shows you are very right
Re: 5 Major Reasons Why Airbnb Failed In Nigeria And Uber Succeeded (PHOTOS) by budaatum: 12:49pm On May 23, 2019
MJBOLT:
even if they do that,it wont help them get more customers due to security issues in nigeria

Thank you! Airbnb your nicely furnished apartment to the current crop of Nigerians and you'd have to refurnish every time they leave! That's why prices are listed in dollars, to weed out the locals. Insurance alone would put you in deficit.

A foreigner is unlikely to walk off with your telly, your fridge, your cooker, bed and even your whole house because those things aren't easy to put on a plane.

2 Likes 3 Shares

Re: 5 Major Reasons Why Airbnb Failed In Nigeria And Uber Succeeded (PHOTOS) by 1Sharon(f): 2:33pm On May 23, 2019
Ok. Why are they scared of bringing strangers into the home?? It's not as if they are allowed to stay in the house while the strangers are there

Or are landlords allowed to stay in the house too?
Re: 5 Major Reasons Why Airbnb Failed In Nigeria And Uber Succeeded (PHOTOS) by budaatum: 2:40pm On May 23, 2019
1Sharon:
Ok. Why are they scared of bringing strangers into the home?? It's not as if they are allowed to stay in the house while the strangers are there

Or are landlords allowed to stay in the house too?
You can bnb a room if you have more than one and stay in the other, though Naija, you likely wouldn't. But harm to one's person isn't the only problem. "Your telly, your fridge, your cooker, bed and even your whole house", as mentioned above.
Re: 5 Major Reasons Why Airbnb Failed In Nigeria And Uber Succeeded (PHOTOS) by 1Sharon(f): 3:16pm On May 23, 2019
budaatum:

You can bnb a room if you have more than one and stay in the other, though Naija, you likely wouldn't. But harm to one's person isn't the only problem. "Your telly, your fridge, your cooker, bed and even your whole house", as mentioned above.

Ok but I don't think it's marketable to stay in the house, don't think visitors will want that. The guests need their safety too and lol the theft problem seems to be a Nigerian issue i guess

1 Like 1 Share

Re: 5 Major Reasons Why Airbnb Failed In Nigeria And Uber Succeeded (PHOTOS) by ICAMETOWIN(m): 8:45pm On May 23, 2019
lol at the theft issue,truth is we ain't advanced or developed enough for airbnb.Give us a couple more decades.

1 Like

Re: 5 Major Reasons Why Airbnb Failed In Nigeria And Uber Succeeded (PHOTOS) by Amuocha: 9:22pm On May 23, 2019
But where is lalasticlala sef
Re: 5 Major Reasons Why Airbnb Failed In Nigeria And Uber Succeeded (PHOTOS) by WhoBeThisMan: 7:19am On May 24, 2019
In my opinion, I think the major challenge is security and power.

If I'm coming to the country for the first time, I would rather stay in a hotel where there is adequate security.

Also i can't just imagine and Airbnb without constant power. And you can't blame the host. Imagine a host charging 15$ per night and using almost 50% of that cost on fuel for generator.
Re: 5 Major Reasons Why Airbnb Failed In Nigeria And Uber Succeeded (PHOTOS) by Nobody: 10:39am On May 24, 2019
Good job op
Re: 5 Major Reasons Why Airbnb Failed In Nigeria And Uber Succeeded (PHOTOS) by tosinornottosin: 1:01pm On May 31, 2019
TechCapon:
The company should restrategize and embark on massive advertising grin
small time you will say this is your write up. So my guy, which YouTube channel did you transcript this write up from grin. I still remember how your yanch was bursted the other day.

1 Like

Re: 5 Major Reasons Why Airbnb Failed In Nigeria And Uber Succeeded (PHOTOS) by Stan4gold(m): 3:38pm On Jul 23, 2019
TechCapon:
TechCapon

Number 2:VERY FEW LOCATIONS



I saw a very limited location available while going through the website. Currently, Airbnb only operates in Lagos and Abuja (I’m not very sure yet) and from what I saw, the available apartments are all in the high-class areas of Lekki, VGC, Ikeja, Ikoyi, Magodo, Victoria Island and so on. So if you want to stay you only have those limited options.

Number 3: SECURITY CHALLENGES



Probably the worst challenge of them all. Looking at the high crime rate in the country, many people are afraid of listing their homes on the service. Mainly because they’re completely scared of bringing total strangers into their homes. Despite the company verifying the guests. There are still numerous bad incidents going on between hosts and guests of Airbnb all over the world. You don’t know if the person is a kidnapper, armed robber, yahoo boy, ritualist, rapist, murderer etc. This has made people stay avoid service in Nigeria.

Number 4:STRICTLY NOT A BUSINESS FOR THE AVERAGE NIGERIAN



Looking at the pictures of tastefully furnished apartments on display on the website. You’ll know that Airbnb is not a business an average man in Nigeria can venture into. Where will he get the money for expensive furniture, electronics, air conditions, carpets, duvets and so on to meet the standard? Where will he get money to rent and furnish apartments in Ikoyi, Lekki, Victoria Island, VGC and so on? To venture into this business you must be comfortable already in order to get this kind of apartment? The reason Uber is successful is that it made it such that average people can participate with their own affordable cars.

Number 5:LACK OF AWARENESS

Remember I started this article complaining of how many Nigerians don’t even know the service even exists in the first place. There’s no form of awareness. No effective marketing programs going on to let the people know of this new service in town. For every 100 persons in Nigeria who know about Uber. Only 10 of them know about Airbnb and only 5 knows that they’re in Nigeria. That’s pretty bad.

SOURCE:https://techcapon.com/problems-with-airbnb-in-nigeria-and-why-the-service-is-not-as-popular-as-uber/

Mynd44
dominique
Re: 5 Major Reasons Why Airbnb Failed In Nigeria And Uber Succeeded (PHOTOS) by Stan4gold(m): 3:43pm On Jul 23, 2019
Restrategizing Airbnb like the way Uber did
Re: 5 Major Reasons Why Airbnb Failed In Nigeria And Uber Succeeded (PHOTOS) by laivwire(m): 9:55pm On Oct 08, 2019
Well, AirBnB is still targeted at foreigners. They’re the ones who book in advance before coming into the country and the service despite the price beats hotels by far.

I got one last year in Kaduna for my sister at about #35,000 per night but it was worth it.

Some people live large off AirBnB. You just have to play your cards right

1 Like 1 Share

Re: 5 Major Reasons Why Airbnb Failed In Nigeria And Uber Succeeded (PHOTOS) by budaatum: 10:11pm On Oct 08, 2019
I think the biggest stumbling block is Number 3: SECURITY CHALLENGES

I can just see Naijapeople bringing trailer and clearing out my Airbnb or crooks finding out who's staying there and paying one a visit.
Re: 5 Major Reasons Why Airbnb Failed In Nigeria And Uber Succeeded (PHOTOS) by missjo(f): 11:18pm On Oct 08, 2019
laivwire:
Well, AirBnB is still targeted at foreigners. They’re the ones who book in advance before coming into the country and the service despite the price beats hotels by far.

I got one last year in Kaduna for my sister at about #35,000 per night but it was worth it.

Some people live large off AirBnB. You just have to play your cards right
Please explain further, i know someone who will be interested.
Re: 5 Major Reasons Why Airbnb Failed In Nigeria And Uber Succeeded (PHOTOS) by Sylvanusnwafor(m): 6:18pm On Sep 29, 2022
This post and thread really helped me as it coincided with a period I was looking for resources to put together for my property in Enugu for Airbnb.

I strongly feel, like every other technology, that with time, we will overcome all these teething issues and thrive as we embrace the reality of our today's digital world.

Like the recent review postulated, the Airbnb has the potential to revolutionize the real estate industry.

I feel it's just a matter of time.

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