Why Airbnb and Uber take off in some cities but flop in others, according to scientists

European researchers who studied more than three million Americans have discovered that a city’s openness to new ideas could help determine whether new businesses succeed or struggle to attract customers

People living in more open-minded cities are far more likely to embrace new services like Airbnb and Uber, according to research suggesting that the personalities of local residents can help determine whether businesses succeed.

Scientists found that San Diego had four times as many Airbnb-style hosts per head as Minneapolis during the first five years of accommodation-sharing platforms, while the number of ride-sharing drivers was more than twice as high.

The differences could not be explained by wealth, education or internet access alone, with researchers discovering that cities whose residents were more curious and willing to try unfamiliar experiences tended to adopt new technology faster.

The study, led by Tobias Ebert at the University of St.Gallen in Switzerland, examined personality data from more than 3.2 million Americans living across 349 metropolitan areas.

Researchers compared those findings with the early growth of accommodation-sharing services like Airbnb, ride-sharing platforms such as Uber and the photo-sharing website Flickr.

Across all three types of business, places with higher levels of psychological openness consistently recorded stronger early adoption.

The personality trait describes people’s willingness to explore new ideas, try unfamiliar experiences and accept different ways of doing things.

The researchers used U.S tax records to track the emergence of small businesses in accommodation and ride-sharing industries, alongside a sample of 80 million photographs uploaded to Flickr between 2005 and 2015.

They then compared adoption patterns with local income levels, demographics, education, internet access and other personality characteristics.

The relationship between open-mindedness and early adoption remained even after accounting for those differences.

The research, entitled Innovation adoption across regions: Psychological openness and the early diffusion of digital platforms, was published online in the academic journal Research Policy.

Researchers believe the findings could help companies decide where to introduce new products and services.

Ebert said: “For businesses introducing new innovations, understanding the people and places most open to change could be just as important as understanding the technology itself.

“Regions with greater openness may provide a more receptive environment for new business models to take hold and grow.”

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_{Main image: An aerial view of San Diego, California, where researchers found that Airbnb-style accommodation and ride-sharing services took off significantly faster than in other American cities. A study of more than three million people across 349 metropolitan areas suggests that residents who are more open to new ideas are also more likely to embrace new technologies and business models. Credit: Mass Communication Specialist 2nd Class Roland A. Franklin / US Navy / Wikimedia Commons (Public Domain)}