10 Unique Business Models

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Launched: 2008

Founders: Brian Chesky, Joe Gebbia and Nathan Blecharczyk

Airbnb stands for Air-bed and breakfast. It connects hosts and travelers and permits transactions while not owning any rooms on their own. Contrary to ancient hotels, Airbnb runs not by scaling inventory however by increasing the hosts and travelers and bringing them under one roof. It is a marketplace where it connects users with property to rent with users wanting to rent the area with internet as the medium for making a contract. Users are “Hosts” and “Guests;” each of which should register with Airbnb. Their website carries three hundred thousand inventories and has helped over four million traveler’s book stays. Not content with only the area booking part, the site is additionally trying to implement new ideas like, cluster eating experiences.

Airbnb’s primary supply of revenue comes from service fees they charge. Fees ranges between 6% and 12%, which depends on the booking value. Airbnb additionally imposes the host 3% from every guest booking of MasterCard process.

As of July 2011, the firm summed up to $119.8 million in venture funding by varied investors like Greylock Partners, Sequoia Capital etc. In April 2014, the company folded on an investment of $450 million by TPG Capital at a valuation of roughly $10 billion.

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