Airbnb, which has operated in China since2016, is retreating from the country after struggling to compete with local“superapps” that charge lower fees and less per night on average than in otherregions, said a person with knowledge of the situation. The pandemic compoundedAirbnb’s business woes, the person said, as China’s “zero-COVID” policy sentmillions into strict lockdown.
Airbnb’s move highlights a growing dividebetween China’s internet and that of the rest of the world. Many US internetcompanies have left China after Beijing emphasised domestic businesses,exercised censorship and made other demands of companies. LinkedIn, the onlyremaining US social network to operate in China, pulled out of the country inOctober, citing a lack of success with its social media and informationfeatures. Airbnb is the last remaining big US internet company in China.
Airbnb, based in San Francisco, will continueto operate a business serving Chinese tourists who were traveling outside ofChina, the person with knowledge of the situation said. It will keep itsBeijing office open with a few hundred employees, the person added.
As part of its retreat, Airbnb will removeroughly 150,000 listings in China, out of 6 million around the world. Stays inthe country have accounted for roughly 1% of Airbnb’s business in recent years,the person said.
Airbnb generated $6 billion in revenue lastyear, up 77% from a year earlier. Like many tech companies that went public inrecent years, it is under pressure to turn a profit. Airbnb’s stock has fallen34% this year amid a wider rout, even as tourism has surged and the demand fortravel services has grown.
CNBC earlier reported on Airbnb’s decision.
©2022 The New York Times Company
