In late 2007, San Francisco, Brian Chesky and Joe Gebbia were struggling to pay their rent due to unemployment. They had to resort to selling cereals on the streets of New York.
In the process, they figured how visitors often face problems in finding a hotel. Consequently, the two youngsters found a gap to fill and decided to encash it. They bought a few airbeds with the money they had left and quickly put up a site called “Air Bed and Breakfast.”
The idea was to offer visitors a place to sleep and have breakfast in the morning. They charged $80 each a night.
Furthermore, Harvard graduate and technical architect Nathan Blecharczyk joined the team as the third co-founder. The first funding of Airbnb was 20,000 dollars raised from Y Combinator. Y Combinator provides seed funding for startups. This money was used for travel around New York for communication with potential customers.
Today, Airbnb has a global market that includes more than 190 countries. It connects hosts and travelers through which they get a commission. The largest accommodation provider organization owns no property of its own. The profits they earn come solely from the commission.
This makes the story of Airbnb one of the most inspiring business stories of the 21st century.