Business Insider Intelligence is a new research and analysis service for real-time insight and intelligence about the Internet industry. The product is currently in beta. For more information, and to sign up for a free 30-day trial, click here.
Peer-to-peer housing rental site Airbnb was on fire last year. As we previously reported, nights booked were up approximately 500 per cent. In addition, we estimated in a recent note that its revenues grew to $52.8 million, up from $8.4 million a year prior.
The numbers are impressive, but it also sheds light on why the collaborative consumption business model is so attractive. Airbnb has no inventory and virtually no fixed costs, it operates a marketplace and picks off fees on every transaction. In other words, Airbnb should, in the long run, be wildly profitable.
Photo: Business Insider Intelligence
Feedback? Questions? Send us an email
NOW WATCH: Briefing videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.