There are signs that what happened to Uber in China might be repeated by another U.S. tech giant: Airbnb.
Airbnb China, established in 2015 by the US$31 billion home-rental platform to conquer the world’s second largest online travel market in terms of digital travel sales, is reportedly in deal talks with its chief Chinese rival: Tujia.com.
While few details are available on how such a deal would be structured, it could come in the form of an investment or strategic partnership, according to Chinese media reports citing insiders.
Tujia.com has already been acquiring smaller Chinese rivals. In October 2016, Tujia.com acquired the vacation rental businesses of China’s largest online travel agency Ctrip and its Qunar.com unit. Four months earlier, it swallowed up vacation rental platform Mighty Talent Ltd., owned by Ganji, in a share swap transaction.
These deals were partly driven by Neil Shen, founding managing partner of Sequoia Capital China, who is an investor in Mighty Talent and one of the co-founders of Ctrip.
Sequoia Capital China was one of two venture capital firms Airbnb Inc. partnered with when it entered the Chinese market in August 2015. Neil Shen has been pushing for a deal between Airbnb China and Tujia.com so the two […]