Airbnb, a 'sharing economy' pioneer, files to go public

Airbnb said Wednesday that it had confidentially filed to go public, taking a key step toward one of the largest public market debuts in a generation of “sharing economy” startups.

A public offering by the company, which lets people rent out their spare rooms or homes to travellers, would cap a volatile year in which its business was devastated by the spread of the coronavirus. Airbnb had been privately valued at $31 billion before this year and the company must now convince investors that it can thrive and turn a profit in a new era of limited travel.

Airbnb declined to comment beyond its brief announcement.

Airbnb’s offering would signal the end of an era for the first wave of highly valued startup “unicorns,” many of which were founded in the recession of 2008 and then rode a wave of growth fueled by smartphones, gig work and copious amounts of venture capital. In recent years, many of Airbnb’s well-known “sharing economy” peers have gone public (Uber and Lyft), sold themselves (Postmates) or unravelled spectacularly (WeWork).

Its debut will most likely be helped by an ebullient stock market, which has remained robust despite the economic destruction caused by the pandemic. On Tuesday, the S&P 500 hit a new high as investors focused on signs that the worst might be over.

Airbnb was founded in 2008 by Brian Chesky, Nathan Blecharczyk and Joe Gebbia as a way to help people make money renting out their spare rooms. The platform has spread to almost every country.

Airbnb takes a cut of the stays and activities that its rental operators book. It has come closer to turning a profit than Uber or WeWork — until the coronavirus evaporated more than $1 billion of bookings almost overnight. In the spring, Airbnb projected its revenue for 2020 would drop to half of the $4.8 billion it brought in last year. The company quickly cut costs, raised emergency funding, laid off almost 2,000 employees and shelved its plans to go public.

Last month, Chesky announced to employees that Airbnb had resumed its plans to go public.