Airbnb expands into hotels, cars, groceries

SAN FRANCISCO – Airbnb, facing tighter local regulations on short-term home rentals, announced on May 20 it is adding boutique hotels, car rentals and grocery delivery to its app in a bid to transform itself into a one-stop travel shop.

The roll-out marks the latest step in Airbnb’s push to capture more of the travel spending that currently flows to competitors such as Booking.com and Expedia.

This evolution – 18 years after the company’s scrappy beginnings in San Francisco – is one of Airbnb’s answers to increasingly tough restrictions on short-term rentals in key markets.

In December 2025, Spain hit the company with a €65 million (S$97 million) fine over more than 65,000 non-compliant listings, and Barcelona decided not to renew thousands of rental licences when they expire in 2028.

New York has banned nearly all short-term private rentals since 2023, and Paris stepped up its crackdown on illegal listings in 2026.

“Travel shouldn’t just be convenient. It should be meaningful,” CEO Brian Chesky said in a statement.

“The best trips help you explore, learn, and come home a little different than when you left.”

The updated app adds grocery delivery through Instacart – an online delivery service – in more than 25 US cities, as well as airport and train station transfers and luggage storage services in more than 160 cities worldwide.

The platform will also offer car rentals, though the company has not yet named its partners.

Mr Chesky outlined the new features at a presentation at the company headquarters in San Francisco.

“We know that a home is not right for every type of trip, like if you’re booking last minute, you’re staying for just one night, you’re on a quick business trip, or when you’re searching for an Airbnb, like in New York, and none are available... Boo,” he said, joking about the restrictions in the Big Apple.

“In this case, the best option might just be... hotel! That’s right, I said it,” Mr Chesky added, as Airbnb employees clapped.

He argued that boutique and independent hotels account for 60 per cent of hotel rooms around the world and his company wants to team up with them.

“They want an ally, they want a platform designed just for them, so they can compete with the chains,” Mr Chesky said.

The app is also getting a range of artificial intelligence features, including a virtual support assistant available in 11 languages.

Airbnb posted revenue of US$2.68 billion (S$3.43 billion) in the first quarter of 2026, up 18 per cent from a year earlier. AFP