Airbnb is planning on shutting down business throughout mainland China after facing scrutiny from regulators and overwhelming competition.
Two sources familiar with the coming disconnect from China by Airbnb have spoken to CNBC, which reported that as early as Tuesday morning Beijing time Airbnb will be informing all employees throughout the country that business will be coming to an end. The sources close to the matter told the publication that Airbnb in China accounted for approximately 1% of the company's total revenue over the last few years, and had expensive running costs.
The sources said that the shutdown can be attributed to growing domestic competition in the space, as well as regulatory factors. Furthermore, the sources mentioned that the COVID-19 pandemic made the situation in China a whole lot worse due to the Chinese government's extreme lockdown with outbreaks and an overall large reduction in general tourism. Notably, Airbnb's share price has slunk a grim 30% in 2022 and is currently trading at an approximate price of $113, which is far higher than its 2020 IPO price of $68.
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