Home / Sports / How Airbnb Fell From Successful Startup to Crisis Mode | WSJ

How Airbnb Fell From Successful Startup to Crisis Mode | WSJ

Airbnb was supposed to be the hottest public offering of 2020. Instead, the home-sharing giant just cut 25% of its workforce and expects revenue to be less than half of what it was in 2019. WSJ’s Preetika Rana explains what made the company so vulnerable. PHOTO: Stephanie Swart for the Wall Street Journal

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38 comments

  1. Avatar
    Lincoln Noronha

    The demand is still there, when the pandemic is over. Investors should hang around. This company is an awesome idea.

  2. Avatar
    Al Wa 王八 王八蛋 Winnie D pooh

    Unicorn startup bubble is bursting.

  3. Avatar
    Andrea Schiavon

    There's a mistake: at 00:30 the video says "in over 220 countries" – there aren't 220 countries globally

  4. Avatar

    Hoe come they operate in over “220 countries” when there are only about 195 countries?

  5. Avatar

    People who buy whole appartment complex's to become superhost and make housing unaffordable for other's diserve to go bankrupt they knew what risk were involved in the investment like these.

  6. Avatar

    It's a company that is wholly dependent on massive amounts of liquid debt flow…like all "successful" companies of the last 25 years. The entire economy is a house of cards and air bnb is just a card wafting in the wind now…the whole thing has collapsed…thank God.

  7. Avatar

    Debt, it'll sink you faster than cement shoes. Ask Airbnb.

  8. Avatar

    Her ‘airpods’ are so distracting.

  9. Avatar

    How? Corona duh

  10. Avatar
    Clemens Steinbauer

    no worries, they will come back bigger than before

  11. Avatar
    Financial Shinanigan

    Don't worry, Airbnb will shrink then bounce back.

  12. Avatar

    Could be the next wework. Or worse!

  13. Avatar

    Do airbnb take a cut off the hosts bookings?

  14. Avatar
    Saumya Brata Dutt

    I'm really loving it that some of the big companies are failing. Several has already ceased their business. More unicorns should fail and will fail.

  15. Avatar

    Rent prices soared in my neighborhood bc people switched from long term rentals to airbnb, that brought down the stock of available long term rentals. I guess some would call that greed bc some of those people were making at least twice as much with temporary rental. I don't think the individual renters/landlords are in bad shape, they've been doing it for a decade so if they were smart they saved their $ instead of buying other properties for the same purpose or buying larger more luxurious homes for themselves.

  16. Avatar

    Where are they going to bounce back from? Without a vaccine, people are staying home, without jobs whose vacationing? Business travel is going to be nonexistent

  17. Avatar

    play the video on at least 1.25x or 2x for better results. thank me later

  18. Avatar
    Leto2ndAtreides

    Ah, the horror…

  19. Avatar

    Thats what all coming of age girls said about 2020… 00:04

  20. Avatar
    Chris Lane Jones

    I met someone in Lynchburg who put tons of capital in Airbnb and even had goats you could pet to find some solace during Liberty University exam week. He said we were the first to stay in about two months.

    After that I said, that's it… I'm out on Airbnb investments Barabra.

  21. Avatar

    The ending is accurate. Airbnb doesn't risk anything. They don't own the buildings, they don't have a mortgages to pay, they don't risk anything. They only take a fee for renting space in your house. You take all the risks.

  22. Avatar

    Haha..this pandemic will slam Airbnb owners who overextended themselves with 5-10 mortgages while overcharging travelers to cover each mortgage while they try to shortcut the path to success.

  23. Avatar

    220 countries?

  24. Avatar

    Hmm, probably because there’s a pandemic going around and people are being encouraged or mandated to stay home.

  25. Avatar

    They were complacent with their racism so too bad so sad🤧

  26. Avatar

    it'll come back up

  27. Avatar

    the risk is taken by the owner and now with covid going on, fewer will be interested on sharing homes.

  28. Avatar

    I stopped using them when they refused to let Israelis rent their places.

  29. Avatar

    I dont think wsj is what it use to be even in digital, now it has alot of bad and biased reporters

  30. Avatar

    0:57 Air beeee and beeee (- my ears 💥 -)

  31. Avatar

    Airbnb will rise again. The concept of Great hosts offering unique away from home stays has not died.The Airbnb’s format provides hosts with a reliable way to filter guests. Guests encounter a format that makes booking and vetting easy. There are fees on both ends.
    I share this especially for those saying that Airbnb takes no risk. Airbnb has a policy in place to insure hosts’ property in case of damage caused by a guest. Guests are offered accommodations when the hosts listing is not accurate or acceptable.
    Airbnb helped me monetize my cabin. For those of you who would argue that I took my cabin off of the rental market – not true. We do not want long term renters here: in 20 years we rented it out once to a colleague. An environmentalist who left no trace.
    The rental scams that have occurred under the auspices of Airbnb are unfortunate.
    Airbnb is also a great format used in disaster relief housing. Hosts can offer housing to disaster relief workers or as we once did, to wild fire evacuees.
    Brian (CEO) has worked with local agencies concerning taxes, TOT, and permitting.
    Brian (CEO) was one of the driving forces that helped CA. to recognize and validate the “gig” economy and its workers.
    Airbnb trends are in transition now, you will see more vacationers traveling shorter distances as states and communities open.
    I love being a host and a guest. I admire the values of its CEO and co founder! Save your apps: Airbnb will rise again!

  32. Avatar
    Jorge Arellano

    It’s unbelievable how many people just dismiss the difficulty and complexity of running a platform. You may not own the assets but you pretty much acquire the customers for your members. And Airbnb’s model is better since it doesn’t really charge the owner anything but the processing fee, it charges the guest. Unlike food delivery services that screw over restaurants.

  33. Avatar

    Thanks for providing meaningful content

  34. Avatar
    The Loner Millionaire

    it IS still a success for the cofounders and early investors…

  35. Avatar

    Not sure why they needed that many employees in the first place. This company should have very little skin in the game and margins should be north of 80%

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