Andreessen: Airbnb makes its money in real estate. But everything inside of how Airbnb runs has much more in common with Facebook or Google or Microsoft or Oracle than with any real estate company. What makes Airbnb function is its software engine, which matches customers to properties, sets prices, flags potential problems. It’s a tech company—a company where, if the developers all quit tomorrow, you’d have to shut the company down. To us, that’s a good thing.
Anderson: I’m probably a little bit elitist in this, but I think a “primary technology” would need to involve, you know, some fundamental new insight in code, some proprietary set of algorithms.
Andreessen: Oh, I agree. I think Airbnb is building a software technology that is equivalent in complexity, power, and importance to an operating system. It’s just applied to a sector of the economy instead. This is the basic insight: Software is eating the world. The Internet has now spread to the size and scope where it has become economically viable to build huge companies in single domains, where their basic, world-changing innovation is entirely in the code. We’ve especially seen it in retail—with companies like Groupon, Zappos, Fab.
“Amazon is a force for human progress and culture and economics in a way that Borders never was.”