Venture Capital: ‘Home-Sharing-By-The-Hour’ Startup Globe Runs Afoul of SF Authorities
Globe, the startup concerned, has been accused of violating shelter-in-place orders.
Emmanuel Bamfo and Erix Xu are founders of Globe, a startup that puts users looking for a day break in the city in touch with owners of empty homes.
“Use Globe to book a nearby empty home to work & find peace & quiet from your roommates or family,” says the Globe website. “Earn up to $5,000/month with vetted locals who need a break from their roommates or family during the day.”
Escape by the hour
The USP of Globe is that users can book a break by the hour. On the flip side, people letting out their properties must abide by stricter cleaning rules after the virus outbreak.
[P.S. – customers must send in pictures of thermometer readings.]
However, San Francisco city authorities have taken a dim view of Globe’s activities, which recently repositioned itself as a platform for people looking for relief from home quarantines. (TechCrunch)
The city has sent the startup a notice charging it for the violation of the shelter-in-place order issued in March. It warned the startup and its founders that they risk “fine, imprisonment or both, pursuant to San Francisco Administrative Code section 7.17(b) and California Penal Code section 148.”
Between a rock and a hard place
Globe faces a difficult dilemma.
Does it comply with the order and suspend operations? Unfortunately, SF is Globe’s biggest market, and the startup is tight on finances. A suspension of operations could morph into a shutdown for good.
Or, does it chug along and hope for COVID-19 relaxations?
Globe working on a response…and hoping
Founder Bamfo is working on a formal reply to the SF notice. Meanwhile, he is still taking bookings in the city.
He’s also hoping that restrictions will very soon be removed and Globe will be saved a painful business interruption.
He does point out, however, that the city authorities have not taken a similar action opposite hotels and Airbnb.
Related Story: Airbnb Raises $1 Billion to Address Coronavirus
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