Airbnb's operation in France faces potential imminent failure, signaling a possible significant setback.
The French government has announced a €1.3 billion package to boost the tourism industry, part of which includes the ambitious plan to build a state-run travel site, intended to rival Airbnb, TripAdvisor, and Booking.com. This proposed platform, often referred to as "France's Airbnb," has sparked a wave of controversy and debate.
The project, managed by the non-profit organization BeVolunteer based in Rennes, France, faces criticism for several reasons. Firstly, the firms behind the proposed travel site are criticized for not being French, with some claiming they are American. Secondly, the platform is accused of not adding value for consumers, as it may complicate their lives by offering similar services to those already provided by established platforms like TripAdvisor, Expedia, or Trivago.
The term "technological sovereignty" is mentioned in relation to the criticisms, but its exact meaning in this context is not clear. The French government's criticisms of these firms also include accusations of infringing on France's technological sovereignty, avoiding taxes, collecting too much data, and not protecting privacy.
However, France's focus is not just on business-to-consumer platforms. The country aims to compete in the business-to-business platform race, focusing on emerging technologies like artificial intelligence. This strategic approach reflects France's history of leading crusades against large technology firms, often referred to as "GAFA."
Yet, the road to success for the French Airbnb platform is fraught with challenges. The platform is facing delays and limited resources, similar to the case of the so-called "French Netflix" Salto. France has a history of failed initiatives in creating business-to-consumer platforms like its would-be Google-killer Quaero, or cloud challengers Numergy and Cloudwatt.
The French-grown tech platform Qwant, launched seven years ago, managed to grab only 0.73 percent market share and relies on governmental life support and Microsoft's Bing to stay afloat. This raises questions about the commercial viability of the proposed French Airbnb platform and its potential impact on the tourism industry.
Some critics argue that the project is based on politically biased motives and a misguided application of industrial policy. They contend that resources could be better spent on supporting digital innovation in core competencies such as robotics, autonomous systems, high-performance computing, the Internet of Things, and key application areas like health IT, smart grids, smart cities, and e-government.
In conclusion, the proposed French Airbnb platform, if launched, may be a disservice to French consumers and taxpayers, wasting resources that could be better spent on supporting digital innovation in areas where France can build on its core competencies. The debate surrounding this venture underscores the complexities and challenges of navigating the digital economy in the 21st century.
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