Airbnb considering long-term rental market

Startup asked McKinsey & Co. to study Craigslist

TRD New York /
Mar.March 08, 2017 12:20 PM

Airbnb might be getting into the long-term rental business.

The home-sharing startup has asked McKinsey & Co. to research the market and conduct a competitive analysis of Craigslist, Bloomberg reported, citing unnamed sources.

The $31 billion company has a sublet section on its website since 2011, which lists apartments and houses to rent by the month in more than 5,000 cities. But the feature isn’t advertised on the website, and is not exactly fine-tuned. It requires renters, for example, to put in an end date for their stays. An expansion into long-term rentals would likely require Airbnb to work out some kind of option for renters to pay for things like utilities and recurring service fees.

A spokesperson for Airbnb declined to comment, saying only that the company is constantly considering dozens of new initiatives and new product categories, many of which never become actual products.

“Examining different parts of the market is standard operating procedure, and we don’t have any announcements to make,” spokesperson Nick Papas told Bloomberg.

Airbnb has been hampered in New York City by legislation designed to curb short-term rentals. The company recently bought the Canada-based short-term luxury rental website Luxury Retreats International for a rumored $200 million.

McKinsey is expected to present its findings to Airbnb’s senior leadership next month.

Craigslist has about 60 million U.S. visitors a month, according to the internet research firm ComScore, which is a huge user base Airbnb would look to tap into. Despite Craigslist’s popularity, however, the website looks much like it did when it launched more than 20 years ago, and doesn’t vet its listings.

A study from New York University in March 2016 found that Craigslist fails to identify and remove more than half of the phony rental listings on the site. [Bloomberg]Rich Bockmann


Related Articles

arrow_forward_ios
Eric Gordon

Eric Gordon on the evolution of the residential data game — and how to stay competitive in the new world

Eric Gordon on the evolution of the residential data game — and how to stay competitive in the new world
Big Tech locations in NYC

MAP: Here’s a look at all the Big Tech locations in NYC

MAP: Here’s a look at all the Big Tech locations in NYC
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

The Airbnb crackdown continues: City targets three more buildings
Shadow Ventures CEO KP Reddy (Linkedin)

Shadow Ventures launches crowdfunding for proptech startups

Shadow Ventures launches crowdfunding for proptech startups
Adam Neumann and “Billion Dollar Loser” (Getty; Amazon)

In “Billion Dollar Loser,” WeWork’s “epic rise” and Adam Neumann’s quiet enablers

In “Billion Dollar Loser,” WeWork’s “epic rise” and Adam Neumann’s quiet enablers
Airbnb sues LA “party promoter” for throwing “mansion parties”

Airbnb sues LA “party promoter” for throwing “mansion parties”

Airbnb sues LA “party promoter” for throwing “mansion parties”
Welcome co-founder Alec Hartman and rendering of a model home (Welcome)

Design, click, build: Startup sells new homes online

Design, click, build: Startup sells new homes online
Travis Kalanick (Getty; iStock)

Travis Kalanick cooks up a real estate empire

Travis Kalanick cooks up a real estate empire
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...