Airbnb putting brakes on international expansion

TRD New York /
Jul.July 16, 2013 12:30 PM

Airbnb, the online home-sharing service that ran afoul of New York City housing regulations, has slowed down hiring for its offices overseas and plans to consolidate its European services, the Wall Street Journal reported.

The San Francisco-based startup, valued at $2.5 billion, is rethinking its business model so that it doesn’t expand too quickly in international markets, the newspaper reported, citing unnamed sources inside the the company.

As part of the consolidation, Airbnb officials are assigning workers to new jobs that will require them to move to a hub operation — most likely in Dublin. The changes have prompted a dozen employees to quit.

In the spring, the international operations team split into a “customer experience” group and a hyper-local group.

Airbnb began operations only two years ago and now has services in 30,000 cities around the world. It faces stiff competition from copycats for room listings in Europe and Asia, the newspaper reported.

Last month, Airbnb had a face-off with New York City over its housing regulations. It appealed a $2,400 municipal fine on behalf of customer Nigel Warren, who sublet his condominium to a Russian visitor for three nights. The city fined Warren for violating the city’s hotel laws, which now prohibit short-term subleasing, as previously reported. [WSJ]Mark Maurer


Related Articles

arrow_forward_ios

SoftBank taps former Sprint CEO to fix WeWork, this borough could house Trump’s presidential library: Daily Digest

Fisher Brothers' Winston Fisher and 55 East 52nd Street (Credit: Getty Images)

Airbnb investor takes more pricey office space on Park Avenue

From left: Mayor Bill de Blasio, 54 West 39th Street, 62 Grand Street, and 208 West 30th Street (Credit: Google Maps)

The Airbnb crackdown continues: City targets three more buildings

Sonder CEO Francis Davidson and 20 Broad Street

Airbnb competitor Sonder says after new funding round it’s now worth $1B

Mayor Bill de Blasio and Stanley “Skip” Karol, an Airbnb host (Credit: Getty Images and Youtube)

Airbnb host narrowly clears hurdle in First Amendment claim against city

Even with $155M in price cuts, this is still the most expensive home listing in LA

A West Village Airbnb listing (Credit: Airbnb)

Airbnb Luxe launched without listings in one of their biggest potential markets — why?

Luxury brokers insist they can take on Airbnb Luxe and win

arrow_forward_ios