It’s now official: Airbnb is seeking long-term accommodation on the New York Stock Exchange. The peer-to-peer rental giant launched its process for entering Wall Street on August 19 by filing a confidential file with the SEC, the US financial market policeman. The California platform, however, did not disclose financial information, or specify how many titles would be put on the market.
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The news in itself does not come as a real surprise. The platform had already announced last September that it intended to go public before the end of 2020. But the Covid-19 health crisis and the collapse of tourism, and consequently the number of rentals, have suspended this process.
“The most painful crisis of our life”
Last May, Airbnb even announced the layoff of around a quarter of its 7,500 employees around the world. “We are collectively going through the most painful crisis of our life”, said Brian Chesky, co-founder of the company that was founded in 2008.
The platform then predicted a 2020 turnover halved, to some 2 billion euros. Signs of these difficulties: the company had then raised in April 1.7 billion euros, half of which in the form of loans at interest rates between 11 and 12%. According to analysts, its valuation collapsed at that time. Before the crisis, it was around 30 billion euros. Since then, it would have melted in half.
Priority to rental between individuals
“Airbnb’s business will recover completely”, but at the cost of strategic changes “Fundamental”, Brian Chesky wrote in a letter to his employees in May. And first of all, at the cost of concentrating on its core business: rental between individuals. So there is no longer any question, at least in the short term, of diversifying by targeting the transport sector or hotels as was discussed.
→ IN 2019. Airbnb is embarking on luxury travel
However, the leaders seem confident for the future. From June, Airbnb noticed a resumption of short stays and close to customers’ homes. Its co-founder said he was convinced: customers “Will want options that are closer to home, more secure and less expensive”.
Resistance from municipalities
However, several factors can interfere with his return to form. Starting with a rebound in the pandemic of course and a mistrust of both owners and tenants despite the health standards that Airbnb has established. The American unicorn is also facing mounting resistance from municipalities around the world who fear that its success will foster real estate speculation and deprive the traditional rental market of many apartments.
VIDEO – Launched 10 years ago, Airbnb has revolutionized the tourism industry
In any case, Airbnb could take advantage of a favorable period for its entry on Wall Street, as the New York Stock Exchange appears to be in great shape and Apple there this week became the first company to cross the 2,000 barrier. billion dollars in valuation.
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