- Tram Ho
On April 6, the accommodation sharing platform Airbnb said it has successfully raised $ 1 billion in loans and equity issues from Silver Lake and Sixth Street Partners. This new investment will contribute to “rescuing” Airbnb in the context of business operations paralyzed by the Covid-19 epidemic.
Last week, in an online meeting, Airbnb CEO Brian Chesky revealed plans to halt all marketing, hiring, and potentially retaining employee bonuses to save money. save cash in the face of business decline due to Covid-19 pandemic. It is estimated that if these activities are stopped, Airbnb can save up to 800 million USD.
According to the business results report, this startup lost $ 322 million during the first 9 months of 2019. Although the revenue increased by $ 1.65 billion in the third quarter of 2019, it could not offset the outstanding increase cost of company.
The partnership late last year with Airbnb’s International Olympic and Paralympic Committee was also postponed until next year due to the Covid-19 epidemic. In addition to the fact that customers all over the world are canceling their reservations because of the epidemic, it seems that Airbnb’s IPO plan will have to be postponed in the near future. When asked about the dismissal plan, Brian said “anything is possible”. Currently Airbnb has about 7,000 employees worldwide.
Reuters, meanwhile, revealed that Airbnb co-founders would not receive six-month salaries, and senior executives would also receive a 50% reduction in wages to help the company through this difficult period.
Airbnb was heavily influenced by the Covid-19 pandemic.
Airbnb is not the only company that has been hit by a pandemic with the global tourism industry. Many other booking platforms are also struggling to survive due to the increasing number of customers canceling a reservation.
Previously, Airbnb has introduced a policy that allows travelers to cancel a reservation and full refunds to partners from March 14 and check-in before April 14. The move was met with disagreements by property owners because they were not informed of the above policy.
To appease and support the landlord, Brian said the company will set aside $ 250 million to reimburse 25% of the revenue lost due to cancellation. In addition, there is $ 10 million for “Superhosts” – popular and highly recommended property managers to help them pay rent or mortgage.
In addition, Airbnb has announced an expansion of its medical accommodation program to provide accommodation for epidemic-fighting first-line physicians and physicians. Under the terms, Airbnb will waive all expenses during this period. At the same time, the homeowners who do the same to support the workers are also entitled to the same regime.
Despite the difficult business situation, Brian thinks that when the pandemic ends and life returns to normal, Airbnb will grow rapidly thanks to the increasing travel demand of people who are limited in travel. long. Although the management of Airbnb was optimistic, the company lowered its valuation last week to US $ 26 billion compared to the US $ 31 billion that investment funds previously valued.
Meanwhile, according to some experts, based on the business results of consecutive losses and the heavy impact of the Covid-19 epidemic, especially, if it lasts longer than expected, Airbnb will run out of cash within 1 year, though they have successfully raised 1 billion USD.
Source : Genk