Airbnb: How does their marketplace flywheel operate?
From 2009 to today, we’ve seen Airbnb grow from a fledgling startup to a behemoth in the vacation rental / alternative accommodation marketplace. This level of growth, especially in 2 sided marketplaces, does not happen by accident.
Over the last 2 years, as I’ve worked at Vrbo, I’ve tried to understand how that Airbnb was able to execute that level of growth. I’ve thought about the areas that Airbnb has focussed on; how they have able to parlay growth on the traveler side into growth in their host side and vice versa. Based on my understanding, I’ve come up with a diagram that reflects my understanding of their product and business strategy.
What do you think? What resonates with you and what doesn’t? What questions does this raise? What’s left unaddressed?
In the next article, I’ll try to tie in some of their strategic business decisions & product features to this flywheel.
Please leave comments!
