Airbnb will close its home business in China as the home-sharing app struggles to compete with local operators.
The domestic segment is expensive and complicated to operate, a person familiar with the decision told Why Baron? The person said that China’s strict COVID-19 restrictions made these issues worse and increased their impact.
Airbnb (ticker: ABNB) formally launched its mainland China business in 2016. About 1% of the company’s total revenue over the years has resided in China, the person said.
The person said outbound travel from China has been a big opportunity for Airbnb and that Chinese users will still be allowed to book listings and experiences overseas.
Airbnb declined to comment.
Airbnb shares are down about 32% so far this year, in line with other tech stocks. The stock was down 2.7% in premarket trading on Tuesday.
Write to Lena Saigol at [email protected]
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