If there is one industry that should steer clear of on IPO during COVID-19 lockdowns and restrictions, hospitality would be the number one contender.
Tell that to Airbnb.
Of course, Airbnb is a technology company. Much like Uber isn’t transport, even though its primary function is to transport people. It too, is tech.
Airbnb hasn’t been immune to the hospitality downturn, so it does seem a strange time to IPO. It would certainly rub the noses of the 25% of Airbnb staff that was laid off in May.
Brian Chesky, president and founder of the peer-to-peer rental platform said of the 7,500 employees worldwide who were let go, “we are collectively going through the most painful crisis of our life”.
Airbnb’s bookings were down 90%. It was forced, like many businesses, to downsize.
At this time Airbnb revised its expansion plans, scaled back its investments in hotels and paused its transportation projects.
Fats forward a few months and Airbnb is now joining data platform Snowflake Inc., software company Asana Inc. and food delivery provider DoorDash Inc., in an IPO race.