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Airbnb is going through a tough patch as the rental-sharing company is reportedly preparing to file an IPO later this month.
The company’s latest challenge is dealing with a well-furnished party tenant that ended in a shooting and three people were injured.
Now, Airbnb has said it will for the first time pursue legal measures on a guest for violating their ban on banqueting.
In a statement, the San Francisco-based company said unnamed clients had booked short-term rentals in Sacramento County on false grounds and that by throwing the rager, they violated the local medical order in the wake of pandemic coronavirus scene as well as Airbnb community standards. .
“This marks the first time Airbnb has taken assertive steps to initiate legal proceedings against a guest who booked an unauthorized party, “the company said in a statement. Rule breaking has been banned from the platform.
During the preparation of Airbnb’s IPO filing, it implemented a series of policies to help repair the company’s reputation in communities opposed to constant strangers in their neighborhood and to address allegations that it is contributing to the housing shortage.
Last year, after a similar shooting at a short-term rental complex that killed five people, the company banned “party houses,” pledging to expand “manual screening of high-risk bookings”. . The company has also created a 24-hour hotline to handle complaints from neighbors.
More recently, it banned some guests under the age of 25 from placing their entire home listings in their local area.
According to the Wall Street Journal, the company’s initial public offering has been delayed due to the pandemic but is expected to take place later this month. Its current valuation is around $ 18 billion – a drop of $ 13 billion from 2017. Also, the company expects this year’s best revenue to be half what it was last year.
It also slashed its workforce by 25% and fired hundreds of contract workers as they tried to reduce costs while borrowing $ 2 billion.
Concerning the Sacramento lawsuit, the company said it plans to donate any proceeds to a local nonprofit that fights gun violence.