Airbnb ‘to buy’ home-rental firm Xiaozhu

China Daily (USA) - - BUSINESS - By BLOOMBERG

Airbnb Inc is in talks to ac­quire Xiaozhu.com to ex­pand in China’s home rental shar­ing mar­ket, ac­cord­ing to a per­son fa­mil­iar with the mat­ter.

The com­pa­nies have held mul­ti­ple meet­ings and the dis­cus­sions are ad­vanced in na­ture, the per­son said, ask­ing not to be iden­ti­fied be­cause the talks are pri­vate. A deal is likely, the per­son said.

Airbnb and Xiaozhu de­clined to com­ment.

While Airbnb is the big­gest global plat­form for peo­ple to rent their homes to trav­el­ers, it’s grap­pling with more es­tab­lished lo­cal ri­vals Xiaozhu and Tu­jia. com in China.

The San Francisco-based com­pany al­ready has about 75,000 prop­er­ties listed in the world’s most pop­u­lous na­tion and plans to in­crease staffing 10-fold, to 300 full-time work­ers.

The com­pany had also re­cently inked a part­ner­ship agree­ment with Ten­cent Hold­ings Ltd, whose mes­sag­ing ser­vice WeChat has more than 800 mil­lion ac­tive monthly users and pro­vided 60 to 70 per­cent of Airbnb China’s lo­gins.

Xiaozhu would give Airbnb an in­stant boost in the world’s se­cond-largest econ­omy. The Chi­nese startup, which was founded in 2012, said this month that it has raised $65 mil­lion of new fund­ing.

The com­pany said it has 10 mil­lion ac­tive users and more than 100,000 list­ings in 301 cities across the coun­try.

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.