Airbnb Company was founded by Brian Chesky and Joe Gebbia in 2008. The two started by renting out air mattresses and other household facilities to travellers. After its launch, the company initiated a project of selling cereal boxes to the Obama and McCain presidential teams. The sales earned the company significant revenue. The company has since then partnered with Dragoneer Investment Group and TPG.
The funding from the two investment groups amounts to 500 million dollars annually. Airbnb Company provides house owners with an opportunity to earn income by renting out their homes to travellers. The company has registered growth in terms of revenue and property listings. Currently, the company has 600,000 listings in 190 countries. Other investment companies that have expressed interest in partnering with Airbnb include Fidelity Investments and T. Rowe Price Group.
Airbnb has developed to become one of the top companies in the industry. Many companies in the industry have expressed concern on the operations of Airbnb. The companies cite illegality in the operations of Airbnb. A New York state law requires states that a house owner cannot sublet or rent out his property for more than one month. Other market players feel that the company is evading tax. Airbnb was last year subpoenaed by the New York Attorney General to answer claims of graft in its operation. The company considers carrying out cleaning services among its operations.
This project has already been set up in some states. The company recorded revenue earning of 250 million dollars last year. This shows a significant growth made by the business. The company also faces challenges in its operations. Some customers vandalize and steal property thus forcing the company to make compensations to the home owners.
Airbnb has made great strides in its operations to become one of then leaders in the hospitality industry. The company should build or buy properties instead of relying on owned homes. The company should also find a way of mitigating compensation costs by imposing fines on customers who damage and steal house property.