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I don't mean making money during this very pandemic. Rather, making money overall. What are they doing besides providing intermediary service all around (most
by yesplorer 7y ago
I don't mean making money during this very pandemic. Rather, making money overall.
What are they doing besides providing intermediary service
all around (most of) the world throughh their website.
I presumed they would be profitable by now, just as Facebook was profitable before IPO. Not saying they should be as profitable as Facebook but they should be profitable from taking a cut off every booking.
- CydeWeys 7y agoThey're just doing what almost all VC-funded private tech companies do: Spend massive amounts of money to grow faster than if you limited yourself to what could be accomplished while maintaining profitability. And the comparison to Facebook isn't really fair; not everyone can be a Facebook. They're an exceptional success story. Airbnb isn't.
- yesplorer 7y agoAirbnb takes approximately 15% off every booking. What are they doing as an intermediary that 15% on each booking isn't enough to pay salaries, rent and server costs?
- CydeWeys 7y agoI don't understand the point of your questions. Are you disputing the fact that Airbnb is not profitable? Because they very clearly and obviously aren't. Or are you saying that their business isn't well run, that their costs are too high, etc.? Because I can't answer this part of it; I don't work for them, I don't set their strategy, etc. I can't defend them on that mark. But it is true. They are spending more than they are earning. Just because you don't understand how or why doesn't mean that it isn't in fact happening.