“Until 2008, Cubans Were Banned From Buying Their Own Computers”

Computers, let alone smartphones, are anything but ubiquitous in Cuba, so it would seem Airbnb would have an impossible task setting up shop. Not so. There was a preexisting infrastructure the company tapped into once the embargo was lifted. From Sarah Kessler at Fast Company:

Airbnb had previously blocked would-be Cuban hosts from listing on its site. Now, it was about to become legal for them to do so.

The hurdles were not small: In 2011, the country’s National Statistics Office and theInternational Telecommunication Union estimated that about 22% of Cubans have Internet access, but that included people who only had access to a government-controlled Intranet. Until 2008, Cubans were banned from buying their own computers. Meanwhile, having a bank account is uncommon. “It’s not just that people prefer cash,” says [Baruch Professor Ted] Henken, “It’s almost the only way. People don’t trust anything else, at least not yet.”

Thankfully for Airbnb, however, it didn’t have to start from scratch. It simply tapped into an existing network of middlemen.

The company partnered with a handful of what it describes asInternet cafes for hosting” that were already facilitating bookings online. These small businesses already had connections with most of the homes for rent on the island, and already charged them a fee for management services. Now they will handle Airbnb listings. Even for hosts who have bank accounts, Airbnb needs to work with intermediaries to deposit funds into their accounts. For the many hosts without access to bank accounts, it partnered with third parties who, in some cases, will deliver cash to their doorsteps (Henken says Airbnb is likely using an established money transfer service to handle payments to unbanked hosts, Airbnb declined specify who’s providing the service for them). All of these are informal partnerships.

Airbnb taught these middlemen how to use the website, and helped them add information. “Maybe they didn’t have high-quality photographs in their homes,” Airbnb’s [Molly] Turner says. “Maybe their availability was written on paper and not kept online anywhere. Our team did a lot of work behind the scenes talking to hosts and making sure that the information was up to date and current.”•

Tags: , ,