Airbnb has asked the SEC to have some edition in the existing rules. If Airbnb gets what it is asking for, then hosting travelers actually get some stake in the company’s future, along with spending some money.
Axios has found that the company (Airbnb) has sent a letter to the SEC proposing for the regulator to allow giving equity to the hosts. Primarily Airbnb has supported modifications to Securities Act Rule 701. According to this, the company allows giving shared to the gig financial workers, and not only to the staff and investors. Brian Chesky, the CEO, described it as a significant thing to reward the supporter of the company.
He stated during a statement to Axios, “We do not have anything without the hosts.” He added, “We wanted to share company with our most loyal hosts, but require the policies to be modified to make it happen.”
However, this is not a first time that a gig-driven company has applied the SEC. Uber has already met with the officials multiple times to ask the professionals regarding the possibility. Airbnb is asking for a direct modification in the policy, whereas, Uber was much more intriguing to know that how can the company distribute the share in the existing policy.
However, there has been no response from the SEO about, how it will outline if the commission is thinking about doing it at all. A modification in the rule is not a simple matter just like a switching on and off a regulatory switch.
Airbnb might face some issues for providing shares to its hosts outside of the US, and even if it is going it inside the US, the company needs to register in case it is looking for more than 2,000 shareholders. That is not inclusive of the tariff implications as well and it as well as some kind of involvement of the political officials.