21511 Lecture Notes - Lecture 3: Airbnb, Social Network, Angel Investor
Airbnb
Started+in+2007
ā¢
Valued+at+$2.6+USD+bn+in+2017
ā¢
3,100+employees+in+2017
ā¢
Initially+targeted+conferences+and+festivals+around+America+created+by+two+27+
year+old+design+students
ā¢
Attracting+funding+was+hard+but+in+2009+they+received+$20,000+from+an+angel+
investor
ā¢
2010+they+raised+$7.2million+allowing+them+to+expand+to+8,000+cities+worldwide+
and+increase+to+500+employees
ā¢
ā¢
Drawbacks:
2010+sluggish+listings+in+NYC+due+to+poor+representation+of+properties
ā
Rented+a+camera+and+took+photos+of+listings+and+saw+the+amount+of+
listings+double+so+they+started+scheduling+a+professional+photographers+
employing+20,000+freelance+photographers+by+2012
ā
Websites+like+airbnbhell
ā
Incubates+in+the+industry+argued+Airbnb+was+unsafe+in+terms+of+health+
and+safety+and+quality+assurances+was+unregulated
ā
San+Fran+residents+were+illegally+listing+personal+homes+and+apartments+
(without+permit+for+renting)+and+there+was+a+question+of+hosts+not+paying+
tax+on+earnings
ā
ā¢
Achievements:
ā
More+personal,+better+descriptions+and+nicer+photos+than+Craigslist-
making+them+more+appealing.+It+is+cheaper+than+equivalent+hotels.+
Emphasis+on+delivering+local+experiences
Easy+car+club-users+can+rent+car+to+others
Ā§
Girl+Meets+Dress-girls+can+lend+dresses+for+special+occasions
Ā§
Airbnb+Neighborhoods+and+local+lounges-partnering+with+local+
coffee+shops+connecting+guests+with+locals+that+can+answer+their+
questions
Ā§
For+hosts,+rents+provide+a+source+of+income+to+pay+for+soaring+
accommodation+costs+in+many+major+cities
ā
Focus+on+belonging+in+new+rebranding
ā
Culture-monitored+through+'Airfam'+a+four-day+San+Fran+conference+
where+everyone+can+meet+founders+and+discuss+strategy,+talk+about+their+
roles+and+hobbies
ā
Social+Connections+was+introduced+which+leveraged+users'+social+graphs+
to+show+whether+friends+have+stayed+with+the+host+or+if+friends+on+FB+
know+the+host
ā
$112+million+funding+in+July+2011
ā
Expanded+through+acquisitions+deal+in+Germany+by+purchasing+their+
largest+competitor+'Crashpadder'+in+time+for+the+2012+London+Olympics
ā
2016+they+had+1.5+million+listings+in+34,000+cities+in+192+countries+
ā
Growth+rate+of+113%+per+year+
ā
Forecast+$10bn+of+revenues+by+2020
ā
Monday,+26+March+2018
12:11+pm
Document Summary
Initially targeted conferences and festivals around america created by two 27 year old design students. Attracting funding was hard but in 2009 they received ,000 from an angel investor. 2010 they raised . 2million allowing them to expand to 8,000 cities worldwide and increase to 500 employees: drawbacks: 2010 sluggish listings in nyc due to poor representation of properties. Rented a camera and took photos of listings and saw the amount of listings double so they started scheduling a professional photographers employing 20,000 freelance photographers by 2012. Incubates in the industry argued airbnb was unsafe in terms of health and safety and quality assurances was unregulated. San fran residents were illegally listing personal homes and apartments (without permit for renting) and there was a question of hosts not paying tax on earnings: achievements: More personal, better descriptions and nicer photos than craigslist- making them more appealing. Easy car club- users can rent car to others.
