In a blow to Airbnb Inc, the head of the company’s Chinese business has left four months after taking the top job in the nation.
Ge Hong (葛宏), a former software engineer at Facebook Inc and Google, told colleagues he was leaving the company for another opportunity.
His departure reflects the struggle Airbnb faces in China, where protectionist laws and fierce competition have long humbled technology giants such as Uber Technologies Inc.
Photo: Bloomberg
Just this month, the Chinese government forced Airbnb and other home-sharing companies to cancel bookings in Beijing’s city center in the lead up to the 19th Chinese Communist Party National Congress.
Airbnb has long regarded building a brand in China as vital, as affluent millennials travel more than ever before.
It spent years raising money and preparing the groundwork to tackle local rivals Xiaozhu (小豬) and Tujia (途家網), which just raised US$300 million.
While the company has offered properties in China since 2013, this year Airbnb chief executive Brian Chesky renamed the service Aibiying (愛彼迎) and pledged to double the company’s investment in China.
It now complies with controversial laws that give local authorities access to users’ information.
In an e-mail sent to colleagues, Ge did not elaborate on his reasons for leaving, but reflected extensively on Airbnb’s breakneck pace of expansion in past months.
Its offices have grown from 30 people to more than 120 in Parkview Green, Beijing, while total listings have doubled to 140,000 from 70,000 a year ago.
Airbnb is on track to double room-nights of Chinese origin to 8 million this year and Ge also pointed out his team reduced instances of fraud from more than 8 percent of gross bookings to less than 2 percent.
“It’s a very tough decision for me to leave behind all of what we have built together. But hey, it’s a small world. I will still be in the Internet industry,” Ge wrote. “I’m sure our paths will cross again in the future.”
Ge did not respond to messages sent to his WeChat social media account.
Airbnb had searched unsuccessfully since 2015 to recruit a business chief for China, before finally promoting Ge from within.
On June 1, Chesky told employees Ge would report directly to him.
“This marks the end of what began as an external search for a China president,” Chesky wrote. “As we met with candidates, it became clear that the best person to lead China was already inside our building.”
Ge was well-regarded by other executives in China’s shared housing space, including at rivals, who saw him as a potent mix of local know-how and Western expertise.
On Saturday, Chesky sent another e-mail: “Hong Ge, our VP of China, is stepping down to pursue opportunities outside of Airbnb.”
Cheksy told employees that Airbnb cofounder Nathan Blecharczyk would take over as chairman for China, spending half his time on the China business and making monthly trips there.
That management change was unexpected, two people familiar with the matter said.
A team of senior executives, including Airbnb vice president of employee experience Beth Axelrod, descended on Airbnb’s Beijing office at the time of the announcement, they said, asking not to be identified discussing internal matters.
An Airbnb representative declined to comment.
Kum Hong Siew, who runs Airbnb’s business in the rest of the Asia-Pacific region, would now play an even more prominent role, though his portfolio is becoming unwieldy.
He is the deputy general counsel for the Asia-Pacific region, the head of business for the region and now the steward of the company’s operation in China.
Siew has worked at Airbnb since 2012, when he joined after a nearly four-year stint as Yahoo Inc’s general counsel for Southeast Asia.
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