San Francisco-based Airbnb was based in 2008 as a strategy to let individuals hire out their very own residences or homes to others. It has change into a pacesetter within the so-called sharing financial system, becoming a member of Uber and Lyft as a approach for individuals to share providers with each other with out forming full-fledged companies.
Airbnb is planning its providing after a troublesome 18 months for rising tech start-ups to enter the general public markets. Each Uber and Lyft had disappointing debuts final 12 months, falling steeply of their first few days of buying and selling. The 2 firms had rocketed to excessive valuations within the non-public markets however didn’t initially persuade a broader set of buyers of their stability. Now they’re now dealing with ridership declines because of the coronavirus pandemic.
Workplace house actual property start-up WeWork had an much more disastrous time attempting — and finally failing — to go public. The corporate, which rents workplace house with short-term leases, tried to enter the general public markets final fall however was mired with controversy over its non-public market valuation and its unpredictable chief government. Former CEO Adam Neumann finally stepped down after important backlash.
Airbnb appears to be extra secure than WeWork, mentioned D.A. Davidson senior analyst Barry Oxford, who adopted WeWork’s failed IPO carefully. Airbnb serves as a dealer between hosts and vacationers, reasonably than really leasing house itself as WeWork does.
“It’s nonetheless clearly a difficult setting for anyone to be going public, however Airbnb does have a proof of idea kind of mannequin,” Oxford mentioned.
Buyers might want to have endurance, he mentioned. At the same time as individuals slowly begin to frequent eating places and outlets in the course of the pandemic, many have nonetheless been holding off on touring.
“Touring goes to take somewhat longer to return again,” he mentioned.
The corporate now says it has 7 million listings on its website in additional than 220 nations and areas. It has expanded to incorporate actions and adventures in lots of cities and is a well-liked trip instrument.
However it has additionally confronted strife with native municipalities, a lot of which have accused the corporate of driving up housing prices by encouraging individuals to checklist their properties as short-term leases.
In the meantime, Airbnb’s enterprise has been hit by the worldwide pandemic, which has paused a lot deliberate journey. Airbnb laid off 1,900 workers, or 1 / 4 of its workforce, this spring, because the coronavirus raised fears about interacting with different individuals’s areas.
On the time, CEO Brian Chesky advised workers that the corporate’s income for 2020 was anticipated to be lower than half of what it was in 2019.
“Whereas we all know Airbnb’s enterprise will absolutely get better, the adjustments it can endure usually are not short-term or short-lived,” Chesky wrote in a note to employees in Might.