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Airbnb, a home rental company, is planning to close its local business in China as another sign of internet separation between China and the rest of the world.
One person familiar with the situation said Airbnb, which has been operating in China since 2016, withdrew from the country after struggling to compete with local “super apps” that charge lower on average and less per night than other regions. The person in question is China’s “zero Covid” policy sent millions to a strict quarantine.
Airbnb’s move highlights a growing divide between China’s internet and the rest of the world. Many US internet companies left China as Beijing stressed domestic businesses, censored them, and made other demands on companies. LinkedIn, the only US social network operating in China, withdrew from the country in October, Talking about failure with social media and informational features. Airbnb is the last major US internet company left in China.
The person informed of the situation said that San Francisco-based Airbnb will continue to operate a business that serves Chinese tourists traveling outside of China. He added that he would keep the Beijing office open with several hundred employees.
As part of its withdrawal, Airbnb will remove nearly 150,000 listings in China, out of six million worldwide. The person said stays in the country have made up about 1 percent of Airbnb’s business in recent years.
Airbnb generated $6 billion in revenue last year, up 77 percent from the previous year. Like many tech companies that have gone public in recent years, it’s under pressure to make a profit. Airbnb’s stock has fallen 34 percent this year amid a wider slump as tourism soars and demand for travel services soars.
CNBC earlier He reported on Airbnb’s decision.
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