From air mattresses to a stock listing: the business of Airbnb

In 2007 Brian Chesky and Joe Gebbia were roommates in San Francisco struggling to pay rent. A design conference had filled the city’s hotels, so they put air mattresses on their floor and rented them out with breakfast. They called it Air Bed & Breakfast.

They brought in Nathan Blecharczyk, Gebbia’s former roommate, to build the website.

Early struggles

The company had trouble raising money at first. To stay afloat, the founders sold novelty cereal boxes themed on the 2008 presidential candidates. They were accepted into the Y Combinator startup program in 2009, and growth followed.

Changing travel

Airbnb let homeowners rent spare rooms or entire homes to travelers. It spread around the world and created a new business for hosts, cleaners and property managers.

It also brought pushback. Many cities, worried about housing shortages and neighborhood change, passed rules limiting short-term rentals. New York City tightened its rules sharply in 2023.

Going public

The pandemic hit travel hard in 2020, and Airbnb cut staff. It still went public in December 2020, and its shares jumped on the first day of trading.

Today the company also sells experiences and services, and competes with hotels, Vrbo and Booking.com.