The Airbnb company is making a significant shift in their business operations, with the home rental service confidentially filing paperwork that’ll make them go public. It marks a substantial change in how Airbnb will approach their daily activities, with shares becoming available for purchase under the US & London Stock Markets. Investors will dominate their decisions, while also demanding new services be released to increase profits. Becoming a publicly traded corporation results in yearly demands for profits & net revenues to increase, putting pressure onto executives to innovate in ways that aren’t possible.
Airbnb was forced into this decision after losing hundreds of millions during the COVID-19 pandemic. Worldwide, nations terminated their international & local travelling permissions to civilian personnel. It resulted in more than $260 Million being lost throughout the first six months of 2020 and comes after Airbnb was already facing a notable decline. Airbnb saw their first nine months of 2019 have substantial losses, listed at $322 Million. The combination of these losses prompted Airbnb to lose $26 Billion of their company valuation, which was listed at $31 Billion before financial burdens began.
Airbnb became an operational company in 2008, becoming an innovative service & creating an entirely new industry. The “Sharing Service” enabled for registered personnel to rent their homes & vehicles to strangers, with both parties maintaining a rating to provide insurances. It wouldn’t take long for competing services to arrive, like Lyft & Uber. Through these rival companies, Airbnb began slowly losing customers & saw a massive decline occur at the beginning of 2019.
The Blog Post
Minimal information was given through Airbnb’s website blog posting was released to consumers & potential investors, where it was clarified that the associated costs of their company shares hadn’t been determined. Additional details regarding their intentions as a publicly traded corporation wasn’t revealed. However, it’s expected that half of their terminated workforce will be rehired. Airbnb was forced to fire 1900 employed personnel in May 2020, which was propelled after losses from COVID-19 couldn’t guarantee that individuals employment contract. Airbnb leaving private ownership & entering into the publicly traded space will enable their profits to regrow slowly. Airbnb hopes that their prior company valuation of $31 Billion can be ascertained by 2023.