With IPOs drawing ever closer two of the biggest disruptors in the travel space are beginning to step into line. Sally White reports

Disruptors they may be in established online travel markets, but that does not mean that Airbnb and Uber are anarchists. As their IPOs draw nearer (at long last) both can be seen toeing lines and sucking up to governments. That seems a wise move indeed! They certainly need friends in high places given the weight of industry’s protectionist lobbies.

Uber, as befits a company with a whopping $50 billion valuation, is currently talking one mega-project – the concept of prising millions of Indians away from the powerful status symbol of a car. Its target is, of course, the environmentally-conscious Indian government. Mumbai’s rickety old red buses are running around bearing posters for a new Uber slogan: “The freedom to own a car without ever buying one”.

Uber plans some hefty growth, so, given India’s notoriously hazardous regulatory systems, this could be a smart move. Now it has 150,000 drivers, but it wants to add over a million.

Of course, its deft footwork could also have something to do with its new shareholder, India’s Tata. The industrial giant has just put $100 million into Uber in a local tie-up. Heavily into car production and finance, Tata would no doubt like to supply the Uber drivers!  

The line taken by Uber co-founder and chief executive Travis Kalanick, is that that the major cities in the developing countries, such as India and China, face an ‘existential’ crisis. Apart from the environmental threat from more cars, driving is fraught and dangerous and parking just about impossible.

Actually, as the Financial Times pointed out, Indian car ownership is tiny. The Indian research company IHS Automotive puts it at 2% of the population and forecasts it to rise to only 4% by 2020. By contrast the ownership figure in the US is 88%. (Hence, perhaps, General Motors’ decision to invest a further $1 billion into its currently loss-making Indian operation.)

Uber also plans to invest $1 billion in India – it needs to if it is to keep up with local rival Ola. By next year Ola will pass the one million driver mark. Set the combined ambitions of the two Indian travel companies against the number of 2.4 million cars sold last year (about the same as the much smaller UK) and Uber’s project does not look so impossible.

Toeing the line on taxes

Round the other side of the world, Airbnb’s latest government-friendly PR move is to offer to collect and remit tax on Paris rentals. So, from October Airbnb will start charging tax - of€0.83 a night –stepping into line with hotels. Facing a storm of protests – from hotels, the government and now neighbours in the increasing number of rented flats – Airbnb has decided to be circumspect in its dealings with the authorities.

Airbnb has also reached agreement to charge and pass on taxes in the US and Holland. But Paris is by far the biggest city market for Airbnb worldwide. The number of residences available has risen from just a few thousand in 2012 to 50,000.  By contrast, Paris hotels are currently seeing falling booking rates. 

In a move that shows that its IPO really, really might launch soon, Airbnb has scored a coup with by securing a heavyweight, establishment new CFO. It has poached the CFO of financial conglomerate Blackstone, Laurence Tosi.

Airbnb CEO Brian Chesky says its new hire's "expertise in hospitality and finance is the perfect combination to help take Airbnb to the next level." Tosi, of course, says in the company’s press release that he was "thrilled to be joining Airbnb, and excited to help this global community realise its incredible potential."

Tosi has had a long career as a top financial executive. Prior to Blackstone, he worked in number of senior managerial positions at companies such as Merrill Lynch and NBC.

The market read news of Tosi’s appointment as indicating that Airbnb’s IPO would be a hefty one.After all, it is now available in over 190 countries and has more than 1.2 million listings. And it is growing fast with analysts expecting $900 million in revenue for 2015, against just $250 million in 2013. Naturally, this being seen as a tech IPO, no one expects it to make any profits any time soon!

Airbnb took another key step towards its IPO a few weeks ago when it raised $1.5 billion, giving itself a $24 billion-plus valuation.  The market is ready to go. Even the turmoil in China is seen bullishly since Airbnb shares could offer tempting financial haven attractions.

Watch out for an upcoming piece on Uber moves in Africa