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Is Airbnb facing a midlife crisis? CEO Brian Chesky is betting big, investing hundreds of millions to transform the platform from a vacation rental giant into an “everything app.” Think fitness classes, gourmet food experiences, and even microdermabrasion – all bookable through Airbnb.
The Genesis of an “Everything App”
According to Steven Levy from Wired Magazine, the idea sparked after the OpenAI drama involving Sam Altman. Chesky, energized from aiding Altman’s return, envisioned Airbnb as more than just short-term rentals. Like Amazon’s evolution from books to a vast marketplace, Chesky believes Airbnb can become the go-to platform for a wide array of services.
During Thanksgiving weekend, alone in his San Francisco apartment, Chesky conceptualized a redesigned Airbnb app. His vision: users accessing the app not just for vacations, but for finding photographers, personal trainers, and chefs. Enhanced identity verification would be crucial, potentially turning Airbnb profiles into trusted digital credentials.
Chesky’s ambitious plan is to expand Airbnb from a near $10 billion-a-year business into a tech titan.
$200 Million to Reinvent Airbnb
Airbnb is rolling out the first phase of this transformation, investing over $200 million to feature more than 10,000 vendors offering various services in 260 cities across 30 countries. They are also reviving “experiences,” offering unique local activities.
Future stages involve robust user profiles, acting “almost like a passport,” and integrating AI to create a “super-concierge” capable of personalized planning.
Altman praises Chesky’s vision, suggesting he’s building a company on par with tech giants like Apple and Microsoft.
Inside the New Airbnb App
The redesigned app features gateways to expanded functions: traditional rentals, services, and activities represented by a house, a hotel bell, and a hot-air balloon, respectively. These icons, crafted by a former Apple designer, reflect Airbnb’s design-centric approach.
Airbnb has also collaborated with Jony Ive’s LoveFrom, seeking to emulate the Jobs/Ive dynamic. Ive lauded Chesky’s design skills, focusing on ideas and problem-framing.
Security is paramount, with Airbnb vetting “service hosts” for qualifications and professionalism. Enhanced messaging features aim to build communities around shared experiences.
Experiences: The Second Time Around
Airbnb is relaunching its “Experiences” program, offering activities led by locals. Chesky attributes the initial failure to poor marketing and timing. Now, with a larger user base and robust ecosystem, he believes it will succeed.
The company plans to offer over 22,000 experiences in 650 cities, including “originals” featuring celebrities. Imagine Conan O’Brien offering a podcasting experience!
Chesky’s “Founder Mode”
Chesky learned to trust his instincts during the pandemic when Airbnb lost 80% of its business. He now operates in “Founder Mode,” focusing on detail and disregarding naysayers.
During product reviews, Chesky is known for his meticulous feedback, ensuring every element aligns with his vision.
Ultimately, Chesky aims to create meaningful connections beyond transactions. He believes that forging connections through shared experiences is what truly matters.
Beyond Airbnb, Chesky is collaborating with Altman and Ive on a secret project aiming to create revolutionary devices, but for now, the challenge lies in transforming Airbnb into the ultimate “everything app.” He’ll have to contend with established giants across multiple sectors to achieve his vision.
Source: Wired Magazine