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How? What are they spending their money on? They need to put people on leave and "pause" their business as quickly as possible!
by qiqitori 7y ago
How? What are they spending their money on? They need to put people on leave and "pause" their business as quickly as possible!
- fbonetti 7y agoThey’re losing revenue due to the massive amount of recently cancellations.
- whymauri 7y agoThey're honoring a massive amount of refunds. There's also a lot of logistical work to be done for hosts which will probably be expensive.
- atwebb 7y agoI think the OP was asking, why is income negative on any revenue (they lost in Q3/Q4 of FY19), what are the expenses that can't be covered?
- CydeWeys 7y agoThey employ a lot of people and have office space. Any big company has a large amount of fixed costs that will drag you under when income dries up.
- yesplorer 7y agoAirbnb has over 5 million listings and 150 million customers around 190 countries and they don't make enough in commissions to pay rent, salaries and server costs?
- CydeWeys 7y agoThey don't. Period. That's a simple fact. No questions need asking here; they do NOT make enough money from their listings to cover all of their costs, full stop.
- yesplorer 7y agoThen they're indeed not fit to run their business, period.
- CydeWeys 7y agoOK, so what are you going to do about it?
- yesplorer 7y agoAm I supposed to do something about it? Do you know the meaning or point of a discussion forum? You're such a bad loser, lol. Wsj published the article, what are they going to do about it? Don't be rude, it's stupid. You can have the last word.
- rchaud 7y agoyou forgot marketing costs. Airbnb is a household name for a reason.
- yesplorer 7y agoAt what point does Management not realise that they need to balance their books and so at least, expenditure = revenue for them to break even? Airbnb is 12 years old. If they haven't figured out that they shouldn't spend more than they earn by now, I don't think the current management will be able to figure it out in another 12 years.
- subpixel 7y agoThey've massively overbuilt their product, and I'm sure wasted millions in the process. I recently booked and I had to actively avoid CTAs for things I wanted nothing to do with: tours, food offers, I don't even know. Finding a place to rent practically meant looking below the fold. Also, pretty sure they developed their own fonts and I shudder to think what they paid for the new utero-logo.