Airbnb now trails Uber by $110+ billion

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CHART 1 • Airbnb trails Uber by staggering $110 billion

Airbnb's buzzy 2020 debut feels like ancient history. After jumping 112% on its first day of trading, the home-sharing platform now trails Uber by a staggering $110+ billion in market value. Uber sits at $199 billion whilst Airbnb languishes at $84 billion – a gap that tells the story of two very different business trajectories.

The reversal is stunning. Uber spent years burning cash and losing billions while Airbnb was hailed as the asset-light darling with recession-resistant properties. But markets have spoken decisively. Uber trades at just 3.9 times next year's sales whilst Airbnb commands 8.7 times – yet Uber's revenue is forecast to grow 14.3% annually versus Airbnb's 10.3%.

Here's the brutal reality: Uber solved a bigger problem. Ride-hailing and food delivery create daily habits, while vacation rentals remain occasional purchases. Uber's diversification into freight, autonomous vehicles and delivery has built a mobility ecosystem. Meanwhile, Airbnb faces pushback from hotels offering competitive rates and cities imposing rental restrictions.

The pandemic recovery initially favoured Airbnb as travel rebounded, but traditional hospitality has struck back hard. Uber's path to profitability through pricing power and operational efficiency has impressed investors more than Airbnb's growth-at-any-cost model in an increasingly saturated market.

Source: Chartr

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