Flytenow, Inc.: Regulatory Challenges in the Sharing Economy
The founders of Flytenow, Inc. (Flytenow), a tech start-up dubbed the "Uber of the skies," faced a crisis when the U.S. Federal Aviation Administration determined that Flytenow's customers, namely private pilots, would be violating "holding out" regulations if they used the service. Flytenow had just completed a three-month mentorship program at Y Combinator, the most prestigious Silicon Valley-based new venture accelerator, which had already helped start Airbnb Inc., Reddit, and Dropbox. The news came on the eve of the company's most important funding round. Should the founders go ahead with their planned funding pitch, or develop a new strategy to address the sudden regulatory barriers?