Without hesitation, Airbnb fires back with a lawsuit against New York City as promised igniting the fight for the right of technology for middle class New Yorkers. This is reminiscent of how venture capitalism was founded by a New York investor in Silicon valley derailing city flush with wealthy investors. Till this day the lead in the technology race is still wide.
The lawsuit filled this afternoon was in response to the bill sent to Gov Cuomo on Tuesday which he promptly signed into law this morning. The new law allows the local government to fine hosts up to $7,500 if they are caught listing a property on a rental platform such as Airbnb. No longer can landlords and tenants ignore the 2010 rule, which made it illegal in New York to rent out a whole apartment for fewer than 30 days.
While we still don’t know how much of Airbnb business in New York is legal with the host present or for rentals more than 30 days, the company claims more than 87 percent of it’s host are operators of one apartment. To back this statement, Airbnb has also said it has taken down nearly 3,000 illegal listings in New York City over the past year, and reports 44,622 total listings in the city as of Sept. 1. Ultimately, we know that Airbnb hosts in NYC have generated over 1 billion in activity–a sum Airbnb wants to grow while the hotel lobbies work effortlessly to demolish them.