UPDATE [April 14 / 8:00 am PST]: There seems to be some confusion around the closure of the Russian (Moscow) LLC, but an Airbnb spokesperson has reached out to us to shed light on the situation. Well, it seems the company hasn’t had a physical presence in Moscow since 2015 (i.e no offices in the region).
It already merged Moscow office with its Berlin offices under its rationalisation program, which also saw the Copenhagen office being merged with the U.K one. Thus, it would have surely made no sense to keep their subsidiary in the region up and running, thus, the co-operative effort has finally come to an end today. The spokesperson further adds that they have a team dedicated to driving growth in the region and they remain committed to Russia.
Here’s the complete statement received by The Tech Portal:
Airbnb has not had an office in Moscow since 2015. We remain committed to the Russian market and have a team dedicated to driving our business forward in the region. As a fast moving business with over 3 million listings in more than 191 countries we regularly review the location of our offices to best reflect the changing needs of our business.
PREVIOUSLY: Airbnb has shuttered its Russian subsidiary in order to streamline operations, a Russian business daily Kommersant reported earlier this week. According to company executives, Airbnb is capable of efficiently serving clients — looking for accommodation in Russian cities, through its offices in Berlin, Dublin, and London. Hence there is a no point in continuing the existence of its dedicated Russian Subsidiary. The local daughter of the home-rental giant seemed to be an expansion without any specific purpose.
It would not be wrong to say that Russia is a little bit more difficult a market to operate in than other European countries, specifically due to adaptation and legal constraints. The industry insiders suggest that being unable to abide by the laws in the region, as Airbnb’s more accustomed to U.S traits, might have been forced to shutter its entity there.
Further, a new bill that comes into play in July requires enterprises to share their cash payments data with Russian authorities via online cash registers. The law will be applicable to all service providers and retail firms existent in the region. In a bid to avoid this new law, all of Airbnb’s Russian operations have now been shifted to Berlin, Dublin, and London. Liquidation of Airbnb’s Russian subsidiary limits the reach of authorities since all money and data will be stored abroad. Hence, the law will not be enforced on the company.
However, on the brighter side, Detailing the liquidation report, Airbnb representative Catherine Kukureko confirmed,
Despite this, the company did not cut staff and in 2017 hired several specialists who promote the service in Russia. Of the Russian market in the team involved six people, positions are distributed between Moscow, Berlin and Dublin, speak Airbnb.
Airbnb established a Russian entity back in February 2012, in order to strengthen its revenue flow from the region. Moreover, it had provided Airbnb with another method to capitalize on its International brand, bagging appreciation of several foreign travellers and Russian consumers. Since only the legal entity has been chipped off, the home-rental giant will continue to offer a full-fledged local experience with a dedicated team and a 24/7 hotline in Russian countries.
