By Alec Hogg
I grew up in Newcastle, then a small town in Northern KZN. In those days before South Africa allowed television, the choice of entertainment was between the Flame Drive-In and a bughouse called The Plaza. It was months before movies made it off the circuit into the town – sometimes so old they broke during showing. Being behind the times surely had its benefits. For teenagers, though, it’s hard to think what they might have been.
In some ways, South Africa is like the Newcastle of the global economy. Global trends do arrive but often take their time to get here. Consider competitive pricing on cell phones. The demise of print media. And the arrival of affordable, uncapped Broadband. But when they eventually land, the disruptive arrivals have the same impact as everywhere else.
That said, the local hotel executives are sure to be a touch concerned at news of Airbnb’s latest fundraising that closed over the weekend, valuing the virtual room-for-hire business at $10bn. Private equity giant TPG and Silicon Valley tech investor Sequoia Capital led a group of professionals which pumped another $475m into the company. Airbnb operates in 34 000 cities worldwide, digging deeply into hotel profits once it hits scale. The concept hasn’t taken off in South Africa. Yet.
Yesterday’s top stories:
The real way to measure influence on Twitter
Add Ebola, sanctions on Russia to your list of worries: SA economist
Seven deadly investment risks. Quick wealth-building tips
Rising electricity prices: What you’ll pay – expert crunches numbers
Employment Equity Act: Big changes, more nasty fines from August – experts
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