Airbnb and DoorDash were announced at the same time, but they look forward to many different avenues to the pandemic

Airbnb and DoorDash were announced at the same time, but they look forward to many different avenues to the pandemic

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In a letter to investors, Airbnb said it was “preparing for the return trip” in 2021 after seeing 41% of bookings drop through its platform in 2020 because people largely stayed home due to the pandemic.

“As the vaccine is rolled out and the restrictions increased, we expect there to be a significant setback,” the company wrote in the letter.

DoorDash, on the other hand, has benefited greatly from people ordering food and essentials while staying at home, with revenue of $ 2.89 billion last year, more than tripling from the previous year. “While the Covid-19 pandemic in 2020 was a headwind for all online trading, we are proud of the excessive profits we have made in terms of peers in the category,” the company said in a letter to investors.
Airbnb has just launched on Wall Street. Now it's worth more than Marriott and Hilton combined

But there is cause for concern. The company said it hoped ‘markets would start opening soon’, but also hinted at a negative impact on its business. DoorDash said this return to normal could lead to “a decrease in consumer engagement and average order values, although the exact quantity remains unclear.”

While shares in Airbnb looked essentially the same after the trading report on Thursday, DoorDash shares fell more than 11%. Both companies remain well above their IPO prices.

For now, both companies still face challenges.

Despite strong revenue growth in the fourth quarter, DoorDash’s losses also increased. It lost $ 312 million in the quarter, compared to $ 134 million in the same period a year earlier. The company made its first profit – $ 23 million – in the second quarter of 2020 before reporting losses again in the third quarter.

Airbnb posted an incredible $ 3.9 billion loss in the fourth quarter, of which $ 2.8 billion is related to compensation on shares. The company said it lost $ 4.6 billion by 2020.

In its earnings report, Airbnb focused on the fact that its fourth-quarter revenue fell ‘only 22% lower than a year-on-year’, indicating Airbnb’s resilience. It generated revenue of $ 859 million in the fourth quarter, despite increases in coronavirus cases.

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