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How Covid-19 Is Disrupting Airbnb’s Business Model.

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When a tree falls in the forest when no one is there, does it make noise? Yes it does, no it does not make noise. The two responses are actually correct depending on the person that is responding.

To a forest or an agricultural expert, he will answer that the tree that fell makes great sounds. That just because no one is there does not mean it did not cause great vibrations, panics and scare other rodents away.

To a non-expert, his response will be, it does not make a sound simply because nobody is there to listen to it.

 That is the exact occurrence of the coronavirus pandemic. To people that don’t know the impact of this virus, they will claim that things will be normal again and in a short while. To others, who have an economic lens and entrepreneurial lens, they will say the world has not seen this kind of economic catastrophe before.

Strive Masiyiwa in his article on his Facebook page pointed out five problems this global recession will cause to the world and how we should respond. They are; restarting our economies, getting children back to schools, food security, creating jobs again and addressing other neglected diseases.

In this article, we shall see how the Airbnb business model was disrupted by covid-19 and how they can pivot with some exceptional ideas.

 The Areas of Disruption by Covid-19

In my article on how the coronavirus disrupted the ride hailing business model, I explained the disruption based on the architecture of the business. The same pattern I will apply to show how Airbnb was affected and disrupted. Let’s get started.

 The Guest Component

The Uber for hospitality ecosystem works by bringing the hosts and guests together in order to create value for both parties. The guest is the one that will book an accommodation to stay in the host’s lodge. The problems created by the covid-19 pandemic to this component are;

  1. Guests are strangers that come into a city. Now that the hospitality, tourism and airline industry are halted, it means there is a decline in demand for Airbnb lodge.
  2. The social distancing is one of the directives of the pandemic experts. That means, stranger cant be accepted to stay in a community being that they can be threat to the health of the people in that community, if they are carriers of covid-19.

 If there is no guest in the business model of the Airbnb, that means the demand side of the business is zero.

The Host Component

How can there be supply when the demand for lodging is zero. In this case, supply is superfluous since the hosts depend on their properties listed on Airbnb for livelihood.

The host component part of the model is disrupted these ways;

  1. Fear of welcoming strangers because the coronavirus can be transmitted from one person to another.
  2. The government has even ordered the closure of the tourism sector and other businesses. The stay at home order is actually staying out of business for others.

 Now that the supply side of the architecture of the model is also affected, what should we do? What about the technological component? Let’s say if this is still valid in the equation of Airbnb.

 The Technology Component

Mobile Application technology is the technology that brings together the host and the guest. These are how the tech component of the business is affected;

  1. There is no listing of lodges by Airbnb hosts on the App.
  2. There is cancellation of bookings by Airbnb management.
  3. There is no new booking  by the Airbnb community.

 At this stage, there won’t be an increase in the number of downloads of the applications because it virtually has lost time value.

 What can we do with this disruption? Here are my suggestions for a successful pivoting of the Airbnb model.

Pivoting the Airbnb Model or be Overtaken

Peter Druck is always correct that marketing and innovation make money, others are cost. This has become more valid in this coronavirus pandemic than ever. Every business will either pivot or innovate in order to be sustainable in the new economy. Here is what I think Airbnb should do;

 The Real Estate Sector Pivoting

Airbnb is actually in the hospitality industry which is related to the real estate industry. What I think will be a successful pivoting for the business is pivoting to the real estate industry. The reason is simply because they have experience in a related industry. Brain Chesky and his management should use their wealth of entrepreneurial experience to innovate in the real estate business.

 The e-real Estate Sector Pivoting

I have come to believe that the digital revolution has replicated everything that is tangible and intangible or digital forms.  Some of the examples are shop and e-commerce, book and e-book etc. In the same vein, we have real estate and e-estate. E-real estate is the buying of space (properties) on the internet in the form of domain names and hosting.

It will be wise for Airbnb to pivot into this industry since it is also a tech company that is solving lodging problems.

With proper innovations of the business and pivoting, the business will continue to thrive.

 We need to change the way we see things. Now, let’s think of new ways we can do business in the new economy that will emerge after the coronavirus pandemic; only then will our survival be guaranteed.

Thank You, Good People – He Got A Promotion

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This is to thank the community for your strong intellectual response to support our small community service on impacting practical knowledge to our people. Many write about challenges in our schools; here,  I write to note that there are many ways we can harness the capabilities of our professionals to elevate our graduates. From MNCs to our startups, many answered our call for guest faculty. My team is working on finalizing everything (we still need more hands, click to learn more). I want to quickly thank all. Also, many schools have reached out on how to integrate our programs into their curricula. We do not know how that will work since we do not claim any accreditation! 

But as that develops, I want to share this testimony from one of our current participants (edition 1 of Tekedia Mini-MBA). I spoke with him – a new GM in an amazing company. We can prepare a new generation of young leaders right here. I am confident that our June 22 edition will be better across all metrics.

“Sir, I am overjoyed. I just received a promotion. On Thursday, I sent to my CEO a Covid-19 Continuity Plan, using the template you made available in Tekedia mini-MBA class. Early today, management asked me to present it via video. Ten minutes ago, I received an email from Head Admin that management wants me to execute that template, and they also promoted me. I am also getting a refund for my personal investment on this training. I want to say thank you to all the faculty for this service.”

Seeking Guest Lecturers for Tekedia Mini-MBA Program

 

Covid-19: An Apocalypse Could Be Brewing in Nigeria

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In a previous rticle, I explained how the emergence of the coronavirus pandemic and its attendant problems on the social and economic lives of Nigerians is a sort of karma in Nigeria.

Now, I am afraid it could be more serious than that.

I sense that except there is an alteration of the current sequence of events, an apocalypse is brewing in Nigeria.

Beyond the detected covid-19 cases in people who traveled into the country from abroad, it is now an established fact that there is rampant local transmission of the virus in Nigeria. Also, due to the current lock-down, a lot of Nigerians are seriously suffering, crime is increasing and a lot of law-abiding citizens are resorting to self-help to protect themselves.

It is from these two inferences that I postulate that Nigeria could be heading for serious calamity.

On the 10th of April, 2020, 3 new covid19 cases were reported in Daura, Katsina state. The 3 new cases are the wife and two children of the first reported case in Katsina. Daura like most areas in Nigeria has a population that is predominantly uneducated, ill-informed and poverty-stricken.

In areas like this, transmission can occur very quickly and in secrecy.

Within a location such as Daura, health coverage is very limited and a comprehensive covid19 test that effectively covers the whole population is virtually impossible considering the horrible Nigerian healthcare system. You can bet Daura has much more covid19 cases than the official confirmations.

Let’s call this phenomenon the Daura factor.

For clarity, let us define the Daura factor as ‘’covid19 spreading fast in an unpredictable manner and shrouded in secrecy due to poor healthcare system and poor human, technological and infrastructural development’’.

Recently, 3 covid19 cases detected in Lagos state were transferred to Ogun state. This was due to the reason that they are resident in Sango Otta, a big town in Ogun state that borders Lagos. The implication is that the coronavirus is now in Sango Otta and transmission is inevitably ongoing.

Sango otta might be more developed than Daura but it is reasonable to say that the Daura factor is currently playing out in Ogun state.

The first confirmed covid19 death in Delta state is an instructive story.

The concerned individual had underlying health issues and had visited Lagos two weeks before. He got sick and was admitted to a private hospital situated within a residential building. The assumption at this time was that it was a non-covid19 sickness. Later, the sickness got out of hand and he was transferred to a public hospital. Shortly after his specimen was taken, he passed away. His test result however came back positive with the coronavirus.

Imagine the number of people that would have unknowingly contacted the virus through this man, both directly and indirectly. The Daura factor is currently playing out in Delta state.

A patient arrived at Lagos University Teaching Hospital’s emergency unit on the 2nd of April, 2020 complaining of malaise, tremors and fever. On admission, the patient did not disclose the fact that he returned from Holland two weeks before where he went for follow-up treatment after a renal transplant. The patient died the following day. A test conducted on the deceased body revealed he had coronavirus.

You can bet many local transmissions has occurred through this man. The Daura factor is playing out in Lagos state.

According to the Nigeria Centre for Disease Control (NCDC), as at 12th of April, 2020, there are 323 confirmed covid19 cases in Nigeria. It would be reasonable to say the unconfirmed cases in Nigeria are in thousands, if not tens of thousands right now.

In line with global response aimed at curtailing the coronavirus pandemic, the Nigerian government has ordered residents of Abuja, Lagos and Ogun state to stay at home for 14 days lasting till 13th of April, 2020. Many state governments have equally taken the cue.

While this approach is commendable, its copy and paste nature can simply not work in Nigeria like it would in saner climes with structured systems and responsible/competent government.

Many residents in Lagos and Ogun state are no longer sleeping at night due to a sharp increase in crimes perpetrated by hoodlums and hungry youths.

More than half of the Nigerian population live under extreme poverty and a huge segment of the working population live from hand to mouth on a daily basis. It is impossible to ask this huge disadvantaged population to stay home for 14 days without expecting big trouble.

I saw a video on Twitter showing the Awori area of Agege where a crowd of men with cutlass and other weapons came out in the night to act as vigilantes in order to protect their community.

A twitter handle @_opyzle with the name Omoluabi reported on the 12th of April, 2020 that there is a serious robbery going on at Abule-Ijoko in Ogun state.

Kate Henshaw, a Nigerian celebrity, reported on Twitter that a lady went to buy stuff at Lekki phase 1 and that boys/guys were lined up on the road saying they were hungry and begging for food.

That is the brink on which those boys/guys can turn to crime very soon.

A twitter handle @iamMotola with the name Tola posted some pictures of himself and others keeping guard at night with the caption – ‘’Haven’t slept in like 5 days straight…rather die protecting my family than to be killed in my sleep’’.

What Tola doesn’t know is that he is equally acquiring a new skill in violence and depending on future circumstances of his life, that skill could later haunt the society.

The fact of the Nigerian lock-down is that too many people are suffering intensely and a lot of people are afraid for their lives, the lives of their loved ones and the likely loss of their little acquisitions due to the increasing wave of armed robbery and other crimes.

The 14 days lock-down ended on 13th of April and the Federal government has extended it by another 14 days lock-down. This has serious security implications and citizens might revolt against the government when the suffering becomes too unbearable.

The bitter truth is that another 14 days lock-down will not stop the spread of the coronavirus, it can only slow its spread. What will the government do when the 14 days extension expires?

And so the Nigerian government is very close to finding itself between the devil and the deep sea – relax the current lock-down and have the coronavirus spread at a faster rate than it is currently spreading or continue with the lock-down and risk citizens revolting against the government.

Such is the perfect recipe for a national cataclysm.

I do not pity the Nigerian government at this troubling time. They have sown into the wind for decades and are bound to reap the whirlwind currently brewing.

Hopefully, a vaccine or cure comes soon enough as it appears this virus is unstoppable any other way.

God help us all.

PS: I was intentional about using the term the Daura factor because Daura is the hometown of President Muhammadu Buhari, and like the Nigerian system, his leadership in this crisis has been very poor.

Sample of Tekedia Mini-MBA Certificate Unveiled

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Our sample certificate which will be awarded to participants

Our Owerri (Nigeria) team has created the certificate sample for Tekedia Mini-MBA. If you are enrolled in the first edition, please update your profile in Tekedia Digital Board with the name as you want it on the certificate. Have a great weekend, Good People. Registration continues for the second batch here.

Our sample certificate which will be awarded to participants

 

COVID 19 : People should avoid making themselves vulnerable to cybercrimes – Ridwan Agboluaje

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An IT expert, Mr. Ridwan Agboluaje has advised people to avoid making themselves easy targets for online fraud during the period of the lockdown of states across Nigeria. He made this advice while interacting with Tekedia. Here are the excerpt of the interview    

Tell us about yourself.

I am Ridwan Agboluaje. I am an IT Expert and Education Advocate who promotes quality education at the grassroot level. I use IT tools to educate and empower youths in my community. I am also a Cyber security expert and I educate people too.  I have over 6 years of experience in Information Technology and 3 years in Education Advocacy, Youth Activism, Community Development and Human Rights especially teenagers’ right to education. I seek to make a tangible, notable and enduring impact in Africa, or die trying. I am the Team Lead at Leadon Empowerment Initiative, a social impact not-for-profit organization that provides economically disadvantaged youths with skills and career development opportunities.

Why do you think cyber crimes are becoming common in this period?

In my own perspective, cyber crimes are very common before and during this period because  of the trend of this era. We have moved almost everything we used to do physically online. Registration for whatever purposes, transactions and even purchase have all become internet driven. However, the danger becomes heightened at this period of the rave of the moment- COVID 19. Since national and sub national governments of the country are declaring lock downs whether partially or totally and organisations too are demanding their employees to work remotely, internet crimes have also been on the increase. Cyber criminals  are looking for ways to steal vital information of people. People become vulnerable when they operate online without paying much attention to cyber security. People who also look for cheap and unbelievable opportunities have the tendency to click on links advertising such and which could lead them into their online security being compromised.

 What kinds of cyber threats are people exposed to before now and during this period?  

During this period, people are open to all sorts of cyber crimes ranging from identity theft and financial scams. Many people are looking for cheap opportunities to make money for self sustenance during this period. So, online fraudsters steal people’s identity to either source for money from the contacts of the compromised  persons or to even withdraw money from their bank accounts. People have reported receiving strange calls asking them for their BVN or other security information about their accounts. The callers usually disguise themselves as bankers. Also, a lot of people have reported their WhatsApp or Facebook accounts being hacked. All these are finance related. Generally, cybercrimes pose a huge threat to private data of individuals, international companies, banks, governments etc. and therefore security breach must be prevented.

Is it possible that people make themselves vulnerable to cyber threats?

Yes, most cyber attacks are caused by human errors, carelessness and ignorance. This is because most internet users have a carefree attitude to the use of the internet. Consequently, they run around trying to resolve their issues after being hacked. Simple personal decisions that people make can put them into trouble online. When users come up with simple and short passwords because they are afraid of forgetting their passwords, they could easily be compromised. Also, when users make use of a single password for all their accounts, they make themselves an easy target for hackers and cyber criminals. People often have the same password for their ATM cards, emails and other platforms where any leak in their information could subject them to distress. Doing that is like a person using a single key to enter a building of eight rooms. The consequences are usually unimaginable because that means the entire house is at risk.

What are your tips for people to be cyber secured at this period and beyond?

Well, my simple advice for people who frequent the internet for all kinds of transactions is that they should develop a cyber security mindset. They should make efforts to ensure that they are protected while online. Such a mindset would save them from being compromised. With the mindset, they are sure to play safe online. They should as well be cautious of opening attachments and clicking on links especially from strange sources. Apart from this, there are six tips that I would also share with people.

One, they should make an attempt to use strong passwords and maintain different password and username combinations for their different accounts. Weak passwords could easily be cracked using certain attacking methods. Two, people should keep their social networking profiles on Facebook, Twitter, Instagram and YouTube private. They should check security settings every now and then. Most importantly, people are advised to be careful of the kind of information they put online. The Internet of Things keeps records of whatever information is put on social media.

Three, many people are not aware that their mobile devices are vulnerable. They could be targeted for malicious software such as computer viruses and hackers. To prevent this, people are advised to install anti-virus software and use a secured lock screen. They should avoid mobile applications from unknown sources and check how applications on their phones use their personal data such as pictures or contacts.

Four, it is advisable for people to protect their personal data by encrypting their sensitive files such as financial records and tax returns  Passwords to their ATMs should not be released to people who they do not trust. Added to this is the fact that people must learn to protect their identity online. In fact, it is better to be too cautious than not being cautious enough. Personal IDs such as name, address, phone number and financial information should not be given indiscriminately online. People are to ensure that they make online purchases using secure platforms.

Lastly, personal computers should be updated regularly with latest patches and updates. This blocks attackers from taking undue advantage of software vulnerabilities that hackers could exploit. Devices should not be programmed to automatically connect to Wi-Fi. People must verify important details of any public Wi-Fi hotspot to ensure it is not set up to steal information. Above all, developing a cyber security mindset will guard a person’s online footprints against theft and financial scams during this period or beyond.

Thank you for your time

It is my pleasure.