From airbeds to a $112 billion empire: the story of Airbnb’s founder

“We called it the air-bed-and-breakfast,” Chesky recalled in a 2017 interview.

Inspired by the potential to connect travelers with unique accommodations, they launched Airbnb in 2008. Chesky’s parents, social workers in upstate New York, initially urged him to pursue a more lucrative career path. “I’m going to become an artist,” he told his mother, who responded, “You somehow managed to pick the only job in the world that pays less than a social worker.”

Today, Airbnb boasts a market capitalization of $112 billion, rebounding from a pandemic-induced crisis that saw the company lose 80% of its business in the initial months. Chesky implemented significant restructuring to ensure survival.

Chesky’s artistic background, while instrumental in Airbnb’s creation and later its rescue, initially hindered the company’s ability to secure funding. Early investors dismissed the founders as designers, not tech entrepreneurs. “Joe and I were designers, and as far as they were concerned, designers didn’t start companies,” Chesky explained. The company gained traction after designing presidential-candidate-themed cereal boxes, which caught the attention of Paul Graham, founder of Y Combinator.

To better understand the host experience, Chesky even lived in various Airbnbs across the country for six months and opened his own home as a listing. He identified inconsistencies and unnecessary practices, including complicated rental agreements.

Airbnb currently faces regulatory challenges, with cities in New York and across Europe implementing restrictions on short-term rentals. Housing advocates in the U.S. have criticized Airbnb, arguing that short-term rentals function as de facto hotels. Airbnb has countered these concerns by emphasizing the importance of affordable travel options.

Recently, Airbnb introduced a new policy prohibiting guests from completing tasks typically handled by cleaning services. The policy, effective for bookings made on or after November 20, has sparked mixed reactions, with some hosts threatening boycotts and potential cleaning fee increases while customers have welcomed the change.