$ABNB is a business that is built to last because of its brand and network effects.

Lets talk about a time when Airbnb's network was tested by a more, well funded competitor.

In 2011 $ABNB faced 1st direct comp, berlin based startup called Wimdu

Wimdu was born by Samwer brothers who earned reputation for cloning US Internet businesses. They built and sold euro auction site to ebay for $50M, and Citydeal which was inspired & acquired by groupon for $170M

Wimdu launched w/ similar look & taglines to $ABNB

Instead of ABNB "find a place to stay" Wimdu promised "Find your favorite places to stay"

At launch had $90M in 🏦 & 400 👩‍💼👨‍💼

@ same time ABNB had 40 👩‍💼👨‍💼, $7M round & only supported 🇺🇸💳 & english only web site

We know what happened to $ABNB - 👋 $72B MC

Wimdu? W/in 2 years ABNB 'em

In 📜 of ABNB CEO Brian Chesky "My biggest revenge on u is, im going to make u run this company long term"

Why would that be scary to Wimdu?

Thats where $ABNB network effects come in.

W/in months of founding, Wimdu was 10X > $ABNB

More from CEO Chesky "suddenly giant 🐲 appears an ur like this is not possible to beat him"

Not just euro market at stake. Precedent in 🛅 industry for euro competitor to grow into global threat e.g. booking dot com

Wimdu focused on speed, 🚫 quality

2 🏗 supply, used bots to scrape $ABNB listings & present on their site, recruited large property owners that managed 100s of shit hostels

Same on demand side, $$ marketing

Listed 50k+ units, $130M annual rev

BUT, poor quality network

$ABNB on other 🖐 focused on creating expectations gap blowing guests away w/ great experienc, .leading to word of 👅 & SEO marketing

🏗 organic supply in 🇪🇺 over yrs, had 🤏, high quality atomic network they could 📈

Invested in site localization, enabling >💱, 👢on ground, PR

It worked. Wimdu wanted $ABNB to bu them. Chesky declined. Within 2 years Wimdu was no more

ABNB with its smaller 🇪🇺network beat better funded, laser focused comp. thru great customer experience, building quality supply, and winning over hosts

The End

Long $ABNB