Airbnb (ABNB) seems to be at a crossroads.
The short-term rental company has been making big changes not only to the way its platform looks, but also where and how the company operates.
In May, the company announced that it would remove all 150,000 of its homes and experiences listings in China just six years after Airbnb launched in the country of 1.4 billion.
While the company will remain in China and maintain an office in Beijing with hundreds of employees, it will focus solely on providing listings for Chinese travelers.
Also that month, the company announced updates to its platform that CEO Brian Chesky said were "the biggest change to Airbnb in a decade," including new search functions and an expansion of its travel insurance service AirCover.
Then in late June, the company announced that the temporary ban on all parties and event listings that it instituted in August 2020 would become permanent.
"We focus on trying to deter the very rare cases of Hosts who do not operate responsibly, or guests who try to throw unauthorized parties. To that end, in August 2020 we announced a temporary ban on all parties and events in listings globally — which at the time was in effect 'until further notice,'" the company said in a statement.
And now, one of the company's co-founders is stepping back from his role at the company.
Joe Gebbia Pursues Other Interests
Airbnb co-founder Joe Gebbia sent a letter to employees stating that he was leaving his full-time operating role at the company and will instead be an advisor.
Gebbia will focus his energies on his family, documentary filmmaking and "various philanthropic initiatives," leaving the company at a time when the stock has fallen 35% over the past three months (three times more the Nasdaq) despite a first quarter that Gebbia called the company's best ever.
"I love and believe in our mission, and don’t want to miss out on all the fun, so I will also take on a new role as advisor, supporting Brian, Nate, and the team on the roadmap, future concepts, and our creative culture," Gebbia said.
When contacted for comment, Airbnb pointed to Gebbia's letter as its comment. Questions about the timing of Gebbia's announcement were unanswered.
Airbnb is scheduled to release its second-quarter earnings results on August 2.
Airbnb Faces Social Media Backlash
Most analysts assumed that Airbnb would suffer during the pandemic, instead the company thrived as newly untethered travelers took advantage of their freedom.
But that success created a ripple effect that resulted in an increase in big money investors buying what were once long-term rental homes and turning them into investment properties that house for travel platforms like Airbnb and rival Vrbo.
That has in turn worsened a housing crisis in major American cities like New York where affordable housing can be scarce.
The public noticed this trend, and earlier this summer Airbnb was trending on social media for all the wrong reasons.
The summer travel season is the company's busiest and most profitable so it remains to be seen whether the bad press and upper-management shifts affects Airbnb's bottom line.
