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Airbnb raises $1B at $31B valuation, became profitable in 2016

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Re: Airbnb raises $1B at $31B valuation, became profitable in 2016

#161

The hogging of VC funds by airbnb, uber, and many other not startups is super unhealthy for the startup ecosystem. The public markets will eventually punish these companies for valuations that lack transparency. Airbnb is on the way out with their current short term renting business in most large cities. It's illegal and the quality of service is suffering dramatically. Supply side quality is on the way down. Demand…

If you are down voting why not offer some opinion so it can be a discussion..

Re: Airbnb raises $1B at $31B valuation, became profitable in 2016

#163
post #109
post #63

Earlier quoted context omitted.

Instead of asking customers to give numeric star ratings, perhaps a better option would be a short list of Yes / No / Unsure questions. Were there clean sheets on the bed? Were there any cockroaches? Did the appliances work? Etc. Such questions are more objective and less prone to inflation.

Booking.com does it, btw. And I strongly prefer it.

Agree - it really helps you identify which parts of the experience are problematic. If the location is 8.7 where everything else is 9.5+, you know you'll be walking a distance to get anywhere useful. If the location is 9.5 while cleanliness is 7.8, you can consider the trade-off to be in the thick of things.

Re: Airbnb raises $1B at $31B valuation, became profitable in 2016

#164
I booked a spare room in London a couple years ago in the Mayfair neighborhood, a quite expensive area. The woman who owned the flat wasn't the one in the photo, and a number of things about the flat seemed rather odd. Long story short, she was a prostitute.

Re: Airbnb raises $1B at $31B valuation, became profitable in 2016

#165

I used to use airbnb quite often (as a traveler), but I have to say it's lost its appeal for me. First, it's really not much cheaper than a hotel in most cases (some cases more expensive). Second, it's a hassle when you're on vacation to have to arrange in advance a specific time to pick up the keys to the place. Then, what happens if you happen to lose the keys (happened to me once)? What happens if it's in the midd…

Maybe it depends on the place you're going; I can't find anywhere nearly comparable in price for a month stay to AirBnB options with local hotels at a location I'm going to soon. Even pretty bad hotels are at least 2.5x the price of a lower end non-shared AirBnB rental

Re: Airbnb raises $1B at $31B valuation, became profitable in 2016

#166
post #4

Earlier quoted context omitted.

I'm not saying this is the case with this round in particular, but it's not unheard of for early employees to take money off the table in a round like this

There was a very "insider baseball" moment in 2011 with regards to AirBNB and a well known investor "discussing" taking money off the table. Note, the investor was basically saying that if the founders get some liquidity, you should offer the same to employees. I will never forget how much that raise my esteem him. [0] So yes, if they were willing to do it in 2011, I am sure that they are doing it in this round too.…

Thanks for sharing that link. Always good to see which investors look out for employees and which founders don’t. Taking a dividend out of the company when most your employees shares are options and not eligible for a dividend is definitely not team spirited. The more transparency to these things the better.

Re: Airbnb raises $1B at $31B valuation, became profitable in 2016

#167
My AirBnB experiences have all been poor, despite staying exclusively at 4.5/5 star reviewed properties. The lack of service isn't worth the extra savings or superior hardware. Hotels are so much more comfortable due to the constant service/follow up in case anything goes wrong.

Re: Airbnb raises $1B at $31B valuation, became profitable in 2016

#168

I used to use airbnb quite often (as a traveler), but I have to say it's lost its appeal for me. First, it's really not much cheaper than a hotel in most cases (some cases more expensive). Second, it's a hassle when you're on vacation to have to arrange in advance a specific time to pick up the keys to the place. Then, what happens if you happen to lose the keys (happened to me once)? What happens if it's in the midd…

Totally agree. I got scammed with fancy airbnb pictures a couple of times and now I don't go near it with a 100ft pole.

It's totally lost its feel of welcoming host. Now it's just another hotel that's poorly run by people who want to make a quick buck.

I stay to hotels even if it's slightly expensive. The level of service and quality is always guaranteed

Re: Airbnb raises $1B at $31B valuation, became profitable in 2016

#169

Earlier quoted context omitted.

I recently booked a place in an apartment complex, and when I arrived, there were big signs at all the entrances saying it wasn't a hotel, that it was for residents only, and anybody found to be renting daily/weekly would be arrested as trespassers. I was only staying there for a couple of nights and didn't have time for the hassle of arguing with Airbnb at the time, so I just took the risk. After my stay, I reported…

Best bet is to report it to the condo association or property management company. AirBNB will basically turn a blind eye to those kind of rentals.

That's right. Airbnb is the Uber of hotels. One place I stayed, I reported to the hoa and my host basically threatened me until I had to block his number.

Until airbnb starts cleaning up their mess I think people will eventually realize that this is just another scam in the long run.

Re: Airbnb raises $1B at $31B valuation, became profitable in 2016

#170

I used to use airbnb quite often (as a traveler), but I have to say it's lost its appeal for me. First, it's really not much cheaper than a hotel in most cases (some cases more expensive). Second, it's a hassle when you're on vacation to have to arrange in advance a specific time to pick up the keys to the place. Then, what happens if you happen to lose the keys (happened to me once)? What happens if it's in the midd…

There's an area Airbnb clearly fails for me, and it's the one your describe: short stays in populated areas. It's slightly cheaper than a hotel, but a hotel has a front desk that's staffed 24 hours a day to solve any problem you have, and you can usually cancel at no charge up to 24 hours before arriving. It's worth the small extra every night.

That said, I've had good experiences with Airbnb for a very vacation-y vacation: house, middle of nowhere, by the beach sort of thing. I don't know of any sites that come close to the global selection Airbnb has.

THAT said, vacation-y vacation rentals are a lot smaller market than short term stays in very populated areas. If I recall, Airbnb launched some business travel capabilities not that long ago and they were not particularly successful. So my general impression is that Airbnb can be a totally successful business, but while it tries to justify a valuation like $31B (rather than focusing on core competencies) it runs the risk of ruining the whole thing.

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