The laissez-faire approach has made Craigslist a haven for hustlers and scammers. A March 2016 study from New York University found that Craigslist fails to identify and remove more than half of scam rental listings. Early on, Airbnb used Craigslist's leniency toward spam to its advantage. In 2009, an Airbnb founder devised a system to email thousands of Craigslist users encouraging them to migrate their home and apartment listings to Airbnb, according to "The Upstarts," a book by Bloomberg's Brad Stone.
Airbnb has offered a sublet section on its site since 2011, listing houses and apartments to rent by the month. Some cities, including New York, only allow Airbnb to offer long-term rentals. The company collects a 9 percent to 12 percent fee from each booking. According to the Airbnb Sublets page, monthly rentals are currently available in more than 5,000 cities.
However, the feature isn't advertised on the homepage and lacks basic functions. For example, it requires bookers to input an end date for their stays, something a person living month-to-month may not know. In addition to addressing that issue, the company would likely build options for long-term renters to pay utilities and other recurring service fees, such as electricity, water and internet, said a person familiar with the matter.
A push deeper into local subletting is in contrast to Airbnb's recently articulated strategy to become a full-service travel company. Brian Chesky, Airbnb's chief executive officer, said the company is building on the trip itinerary options, tours and other travel experiences it introduced in November. The company is also developing a flight-booking tool. Last month, Airbnb made its biggest acquisition, spending about $300 million on Luxury Retreats, a platform for high-end travel rentals and tourism services. And it's been looking at acquiring other travel-related startups.