Nathan Blecharczyk, Airbnb Inc. Its co-founder and chief strategy officer, speaking during a press conference in Tokyo, Japan, on Thursday, June 6, 2019.
Akio Con | Bloomberg | Getty Images
Airbnb is shutting down its domestic business in China, according to two sources familiar with the matter. The company plans to speak to the country’s employees in Beijing on Tuesday morning.
The Chinese list of all mainland – home and experience – will be taken down this summer
Airbnb officially started its mainland business in China in 2016 and has faced competition from domestic players. Sources say the department was already expensive and complicated to manage. Epidemics have exacerbated these problems and increased their impact.
Despite being branded at home and abroad and co-founder of Airbnb, Nathan Blecharczyk, at the top of the effort, is responsible for about 1% of the revenue over the last few years in China on the platform.
Sources say that Chinese outbound travel has been a great opportunity for Airbnb and the company will re-focus on providing a list of overseas Chinese travelers. A source said the overlap between Airbnb’s outbound and domestic business was not strong. According to a source, Airbnb will maintain an office in Beijing with hundreds of employees.
Shares of the company have fallen more than 30% this year amid widespread sales in technology stocks, but it is still trading well above its 2020 IPO price of $ 68. Airbnb fought in the early days of the Covid epidemic, lay off about 25% of its staff in May 2020, then went public in November of that year. In its IPO prospectus, the company noted that Chinese hosts used a separate cleaning program to prevent covid infection than the uniform five-step cleaning process applied to the rest of the world.
Business has recovered since people started traveling again, and the company has raised long-term rents this year for the flexible work arrangements of many employers during the epidemic. However, Chinese trade has been slow to recover, as the country has been locked in a periodic battle to fight the next wave of infections.
Airbnb declined to comment.