Airbnb vs. Uber: Which is a Better Business?

Not a week goes by that I don’t get pitched about some new sharing economy startup that’s the “Uber” or “Airbnb” of dog sitters, makeup artists, private golf courses or something else.

On-demand ride and room-sharing companies have a lot in common, and the market leaders could even be assigned the same sky-high value by investors. Airbnb recently raised money at a $10 billion valuation, and I’ve been told that Uber is eyeing the same number for an upcoming investment round. (Bloomberg first reported Uber’s early talks for new financing.) 

But it is important to note key differences in their business models—and the reasons why I’d give Airbnb a slight edge.