Airbnb founders made a decision to target users that were exactly like them. They were able to create an environment where their target market would feel comfortable. It was only after they had figured out how to reach out to their ideal customer base did they start looking into other ways of marketing themselves.
First, they built an email list before they had anything to sell. Airbnb built an email list and then sent out regular updates about their progress. Then, when they were ready to launch their service, those who signed up received an email inviting them to use the site for free during its initial beta period and giving them access to discounted rates if they booked something through Airbnb versus being hosted by a friend or family member.
Airbnb added beds to a conference in 2007 after the venue didn’t have enough rooms. Airbnb’s first customers were people traveling through New York City and it was all thanks to a Meetup. In early 2007, Airbnb co-founder Joe Gebbia hosted a Meetup for people who had come into town for some tech conference and needed a place to stay. They had to put people up in an apartment and charge $20 per night for guests to stay there.
This strategy had several benefits: it helped build trust with potential customers, and it allowed AirBnB to scale quickly once its website did go live because all the early adopters already knew about it.
Airbnb founders Brian Chesky, Joe Gebbia, and Nathan Blecharczyk, also went door-to-door in New York showing people the value of Airbnb set out to show people how much money they could save by using Airbnb and how easy it was to use the website. They took their pitch directly to people by going door-to-door. They showed people how much money they could make by using Airbnb and even offered to cover their first two nights of hosting if they used their service once that week.
The founders of Uber, on the other hand, wanted to get people excited about trying the service, so they started by giving away coupons. They also invited journalists to test the service and spread the word through social media.
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Uber then contacted journalists who wrote about startup tech companies or other transportation services and invited them to try it. They wanted to get the word out, but more importantly, they wanted to test the service. If a journalist liked Uber, they might mention it in an article and other people would come on board. Then Uber could start charging for their rides, which would bring in money for the company and help them grow even faster.
Uber then used influencers and celebrities, who shared the app with their followers on social media and other platforms. Celebrities are perfect influencers because they’re more likely to be trusted as experts, and they’re well-known for their particular expertise in whatever field they’re known for. Celebrities are also usually able to reach millions of people with one post on social media which means that when you partner with them, it can get your brand exposure very quickly.
The next step was to get people to try out the service. When the service was available in a new city, they would send free credits to customers in that area ahead of time so they could test it out. They also gave away credits to local influencers, businesses, and media contacts.
They also offered promotions where you could spend a lesser amount with Uber on rides instead of taxis or public transit which helped reduce costs for users. And when the service launched in your city, you could use your first ride as an Uber credit for free.
They used new technology like QR codes and mobile apps to make requesting a ride quick and easy. The company made it easy for customers to request a ride. The idea was simple: when you needed a ride, you’d open the Uber app, select your destination, and request a car using your phone’s GPS location. The driver would then be notified of your order through their own Uber app — which also tracked their location in order to make sure they were nearby when you needed them — and would arrive at the requested time.
There are many more ways to launch a new product and build initial growth; first, find the best strategy for your business, what’s important is that you keep experimenting until something works. This strategy has worked for Uber as they grew from 11million users in 2015 to 118million users in 2021; also for Airbnb as they grew from 6million users in 2012 to 150million users in 2018.
FAQs
Airbnb's first customers were people traveling through New York City and it was all thanks to a Meetup. In early 2007, Airbnb co-founder Joe Gebbia hosted a Meetup for people who had come into town for some tech conference and needed a place to stay.
Why did Airbnb and Uber succeed? ›
Why are these disruptors successful? The key to Uber and Airbnb's success is that they democratized the availability of their industries' services, providing consumers with more options that were more closely tied to their digital habits.
How does Uber attract new customers? ›
How does Uber attract customers? Uber provides a one-stop solution for all ride-hailing services and deliveries. It provides irresistible rewards, coupons, and discounts timely and regularly to attract new customers and retain the old ones.
Which came first Uber or Airbnb? ›
The two men rose to prominence together — Airbnb was founded in 2008, Uber in 2009 — using the ubiquity of the smartphone to build on-demand empires, Kalanick with ride-sharing and Chesky with home-sharing. Both founders' missions quickly took off.
What is Uber's early marketing strategy? ›
One of Uber's early marketing campaigns was focused on establishing the brand and driving awareness. The company used digital advertising, such as online and social media ads, to reach potential customers and educate them about the service.
How did Uber gain traction? ›
Research Insights. Uber was founded in 2009 by Travis Kalanick and Garrett Camp, and it quickly became a pioneer in the ride-hailing industry. The company's success can be attributed to several factors, including its innovative business model, user-friendly app, and aggressive expansion strategy.
How did Uber get their first driver? ›
This was the beginning of UberCab, which was initially a black car service. To get their first drivers, Travis cold called black car drivers and offered to pay them an hourly rate while they tried out the platform. Three of the first 10 drivers that he called, agreed to give it a try.
How did Airbnb get so popular? ›
Airbnb's massive success is largely attributed to its strategic emphasis on design thinking and user experience. By prioritizing the needs and preferences of its users, Airbnb cultivated a culture of broad-based thinking.
What is the business model of Uber and Airbnb? ›
Uber and Airbnb both operate in an economic model called sharing economy where people or groups share goods and services resources in a collaborative way with the use of technology such that physical assets become services.
Who is Uber's target audience? ›
Target Audience of Uber
The target customer segment that Uber is trying to attract to its company are people who do not have a car, don't like to drive themselves, or people who don't want to go themselves to a party, want to travel in style, or want a cost-efficient cab waiting for them at their door.
Weaknesses. Dependence on Independent Contractors: Uber's business model relies heavily on independent contractors, which exposes it to regulatory risks and potential reclassification of drivers as employees.
How did Airbnb get their first guests? ›
LESSON ONE: THINK LIKE A CUSTOMER
It's not like they could go around San Francisco knocking on doors. Instead, founders Brian Chesky and Joe Gebbia thought like customers themselves, trying to figure out where they would go if Airbnb didn't exist. It didn't take them long to figure out the answer: Craigslist.
How did Airbnb market itself in the beginning? ›
Using Facebook, Airbnb launched an early advertising campaign in San Francisco and New York. The aim of the campaign was to communicate how much money people could earn by selling access to their homes while they were on vacation.
What did people do before Airbnb? ›
Before home-sharing platforms popularized short-term renting, the practice was still fairly common but more often found under a different name: vacation rentals. People looking to escape their everyday homes for a holiday would look to vacation rentals as an inexpensive alternative to a hotel.
How did Airbnb get its start? ›
Airbnb was founded by Joe Gebbia and Brian Chesky in 2007. The idea sprang up when the duo struggled to pay their rent and decided to put their loft's empty space to use by turning it into a lodging space for people attending a design conference in San Francisco.
What was Airbnb's market entry strategy? ›
Airbnb's marketing strategy takes advantage of the power of UGC, or User-Generated Content, to differentiate itself in a competitive market. The company encourages users to share photos and videos of their experiences on Airbnb, which can help to create a sense of authenticity and community among users.
Who were the first Airbnb guests? ›
Not just this, Amol Surve – Airbnb's first ever guest- was hosted by none other than the co-founders Brian Chesky and Joe Gebbia, at their Rausch Lane apartment in San Francisco, California back in 2007 when it was still called Airbed & Breakfast.
When did Airbnb gain popularity? ›
By 2011, Airbnb had listings in 89 countries and over 1 million nights booked. That same year it opened its first international office in Hamburg, Germany. This rapid scaling was a testament to the platform's growing popularity and the strength of its business model.
