Belong anywhere—including

the road
Driving Long-Term Growth through a strategic
acquisition of the US leader in peer-to-peer car sharing.

RED 8

DECEMBER 2023
The roadmap for today’s discussion includes the following stops:

IMPLEMENTATION
TIMELINE

7
5 YEAR GROWTH
PLAN

4
RISK
CURRENT 8 MANAGEMENT
SITUATION
MARKETING 6 OPERATIONS
1 5 STRATEGY PLAN

SERVICE
3
EXPANSION
CUSTOMER
2 SERVICE
IMPROVEMENT

2
Airbnb’s loss of $19M in 2023 Q1 and lower occupancy rates calls for an immediate
action plan to avoid “Collapse.”

Aiming to gain a competitive advantage in a growing

market
SITUATION

1. We lack sustainable competitive advantage

2. Heavy influx of competitors
3. Legal and trust issues in the market COMPLICATION

What should our strategy to drive long-term

growth and improve customer service be?
QUESTION

Service Service Marketing Operational Implementation Risk

Situation Improvement Expansion
Growth Plan
Strategy Plan Plan Management
3
Addressing Customer Service (CS) concerns immediately is a top priority to
improve customer satisfaction and reduce churn rate.
B E S T A I R B N B H O S T S B E C O M E S U P E R H O S T T H AT S U P P O R T C U S TO M E R S

“Hi I am Superhost David, I am your escalation

point for unresolved issues and will be happy to
“Hi I requested a “Hello, the listed assist with: support in emergencies,
refund but I have only booking was fake. unreachable CS, facilitate refund
been provided with the I am stuck outside discussions with host, safety concerns and
partial amount” with nowhere to stay” address unanswered questions”

Booking Check-in Conflict Call CS Notify Superhost On-site support

“Sorry we cannot help Key Pain points

with that, I will have to Limited support in emergencies
hang up ” Unfair refunds favoring hosts
Agents rude or provide wrong answers

C O N T I N U O U S I M P R O V E M E N T: A P E R M A N E N T P E R F O R M A N C E I M P R O V E M E N T P R O G R A M ( P P I P )

Have a 24/7 emergency line that can forward the call to the Superhost when needed
Include assessment and trainings on “Dealing with Difficult Situations” and “Empathy in Customer Service”
Performance-driven staffing and accountability measures
Providing agents with customer service script, access to knowledge base, and AI-powered automation by leveraging recent acquisition.

Service Service
Growth Plan
Marketing Operational Implementation Risk
Situation
Improvement Expansion Strategy Plan Plan Management
4
Entering the peer-to-peer car sharing segment will ensure long-term sustainable
growth and make the business more resilient

Acquire Turo, the ‘Airbnb of cars,’ to enter the market of peer-to-peer car sharing

AT T R A C T I V E M A R K E T
The P2P car sharing market was valued at $7.4B globally in 2020 and it’s expected to reach $15.9B by 2027.
More than 25% of surveyed vehicle owners indicated willingness to rent out their vehicles through a P2P car sharing

S E RV I C E D I V E R S I F I C AT I O N
Integrate offer and provide a unique combination of accommodation and transportation
services generating an increase in P2P global market share from 2% to 9%.

ST R O N G SY N E R G I ES
Through operational synergies, such as shared infrastructure, customer
support, marketing efforts Airbnb could realize $700M savings per year.

SOURCE: Statista, 2014 Ballus- Arnet Survey

Service Service Growth Plan

Marketing Operational Implementation Risk
Situation
Improvement Expansion Strategy Plan Plan Management
We considered these other potential ventures and selected P2P car rentals due to
its better fit with our core business, and strong revenue streams

Travel P2P Car Coworking Space Virtual Travel P2P Local

Insurance Rental Rental Experience Food Catering

Market Size $20B (2022) $13B $14B $450M $6B

Market Growth (CAGR) 15% 6% 17% 30% 3%

Many well-established Relatively new market Highly Competitive New market with no Lots of small regional
Competitive Landscape players with no major players market major players players

Significant cross-selling Significant cross-selling

Overlap with core Potential to cannibalize Limited alignment
Strategic fit opportunities and opportunities
business core business with core business
overlap with core business with core business

Average Annual
Spend/Customer
$800 $5400 $1200 $1500 $500

Source(s): Statista, Future Market Insights, Grand View Research, Allied Market Research, Second Measure, Market Watch

Very Low Low Medium High Very High

Service Service Growth Plan

Marketing Operational Implementation Risk
Situation
Improvement Expansion Strategy Plan Plan Management
6
Our growth strategy will achieve over 16% CAGR in five years and increase Market
Capitalization by 23%, improving shareholders value.

5-YEAR REVENUE PROJECTION

Revenue TRANSFORMATION HIGHLIGHTS
in $B Exp.% of
revenue Payback in 2.7yrs and NPV of $40.5B
$35.00 76% 80%
74% $2.15B required to acquire Turo based on
71% 69% valuation premium of 10% on implied equity value.
66% 70%
$30.00
63%

60% Increasing CAGR by 5.1 points

$25.00
22.3 Improve sales efficiency to achieve a 20%
CAGR
19.4
50% increase in revenue ($9.7B) over 5 years.
$20.00 4.27
16%
16.8 2.79 40%

$15.00 12.6
14.5
0.69
1.57 Decreasing Operating expenses to 63%
10.7
0.24 30% Cost synergies to drive down operating expenses
$10.00
translating into 28% increase in operating Income.
18.00 20%
16.62
15.21
13.81
12.31
$5.00 10.71
10% Increase Market Capitalization by 23%
Enhancing shareholder value through market cap
$0.00 0% increase from $92B to $112B.
2023 2024 2025 2026 2027 2028

Consolidated revenue Incremental Revenue Operational Expenses Source(s): CapitalIQ, Pitchbook, Statista, Airbnb 10-K reports, Turo S-1 filing

Service Service Marketing Operational Implementation Risk

Situation
Improvement Expansion Growth Plan Strategy Plan Plan Management
7
A strong go-to-market strategy and unified brand messaging can help capture more
market share, by leveraging personalization through digital channel.

Value Proposition: For Value-focused travelers, Airbnb unlocks a world of personalized travel — their ultimate
companion for tailor-made travel adventure, where every stay and drive reflects their distinct preferences and
desires.
Our Target Customer
George the Car Enthusiast John the Mountain Explorer
Male, 46 y.o, University Professor Male, 30 y.o, Wood Crafter
Value-focused travelers seeking savings and Passions: Tesla and Taxman Beer Passions: Nature and Hand Crafting
convenience on their adventures.
Gen Xers and Millennials, Middle to Upper-
Middle Income. Engaged with social media “I'm planning a weekend escape to the Rockies and
“ I am travelling to Malibu and would like to rent a beach
and responsive to promotions. envision a cozy cabin surrounded by nature and a
house and a convertible Tesla 2011 for a coast drive.”
(60% of guests who booked AB are millennials) rugged 4x4 from Turo to explore the mountain trails.”

Our Marketing Mix and Global Expansion strategy

Product – Comprehensive travel package to seamlessly plan and book both their stay and transportation in one place.
Price – Consistent cost savings across accommodations and car rentals. Customers pay 25% less on Turo compared to competitors.
Place – Eliminate the need for agencies and providing the convenience of a broad peer network in the US (and global by 2025).
Promotion – AI-powered and personalized landing pages, showcasing popular spots and vehicles rented by similar profiles.
Global Expansion – Implement region-specific compliance measures and insurance policies and enable a multilingual platform.

Service Service
Growth Plan
Marketing Operational Implementation Risk
Situation
Improvement Expansion Strategy Plan Plan Management
8
Bundle, add-on, and custom pricing will capture the most profitable travel
segments.

Daily fixed rate Peak/lull pricing

• Determine automated pricing through competitive • Price discrimination to capitalize on revenue
analysis, surveys and determining profitable and reach equilibrium pricing around holidays,
margins. weekends, and events.

Mileage-based pricing Custom pricing

• In addition to the fixed daily rate, there will be • If they're also a Home Host, a CarHost can opt
a per-mile charge, with an option to include a in to bundle their vehicle with an Airbnb
certain number of miles in the fixed rate. property.
• CarHosts can opt into automated pricing
based on make, model, mileage, year, and
condition; or customize prices and discounts
themselves
• Incentives for electric and hybrid vehicles for
CarHosts

Service Service
Growth Plan
Marketing Operational Implementation Risk
Situation
Improvement Expansion Strategy Plan Plan Management
9
 Leveraging operations and sales synergies will unlock additional revenues of $5.5B
and reduce cost by $3.5B during the next five years.

SAVING PER FUNCTION IN 2028 ($M) CROSS-SALES

Providing a combined offer that will drive Average

IT 2,817 87 adoption from new customers across both incremental
platforms will help generate $1.28B for Airbnb
and $6.4B for Turo. revenue of
Use Airbnb’s global presence to further expand $1.1B
Sales & globally and introduce Turo to Asia and expand
Sales & Marketing
Marketing
2,848 212
in Europe, generating incremental annual
each year
revenues of $2B.

G&A 1,838 266

COST SYNERGIES
Leveraging our increased negotiating power and
shared agreements can help us realize cost Average cost
Operations 2,939 266
savings of 16%. saving
Consolidating marketing, operations, back-office $700M
and infrastructure expenses with an average
Cost of
Cost of Revenue 2,939 573
savings across functions of about 9%.
each year
Revenue

- 500 1,000 1,500 2,000 2,500 3,000 3,500

Source(s): CapitalIQ, Pitchbook, Statista, Airbnb 10-K reports, Turo S-1 filing

Service Service
Growth Plan
Marketing Operational Implementation Risk
Situation
Improvement Expansion Strategy Plan Plan Management
10
Three major projects are required to enable the growth strategy – they will be
completed over six quarters.
R E VA M P C U S T O M E R S AT I S FA C T I O N

• Institute comprehensive review framework based on automated tools and customer feedback.
Launch PIP Program • Scenario-based training, focusing on soft skills.
• Staffing changes for consistently bad performers.

Continued Refinements to Performance Monitoring and Training for Service Staff

• Launch pilot in NY and LA targeting 70,000 properties
Superhost Support Program Pilot • Gather feedback from customers and refine further
• Integrate feature into both apps
Superhost Support US launch • Establish clear escalation protocols
Expand Superhost Support

E N T E R I N G T H E P E E R - TO - P E E R C A R R E N TA L S PA C E

• Due diligence
Announce Bid • Build Integration plan

Close Acquisition Marketing, Sales and Admin Consolidation

• Integrate car rental features into Airbnb app
Build Cross Selling Integrations • Build cross-platform hosting support

Expand Turo Europe Turo Asia Launch

New Marketing Campaign

2024 Q1 2024 Q2 2024 Q3 2024 Q4 2025 Q1 2025 Q2

Service Service Marketing Operational Implementation Risk

Situation Growth Plan
Improvement Expansion Strategy Plan Plan Management
11
Proactively identifying and managing the risks can help ensure we derive the most
value out of this venture.
RISK IMPACT & PROBABILITY ANALYSIS TOP 3 RISKS & MITIGATION APPROACH

High Proactively Operational Manage

Monitor complexities Closely Risk Mitigation Approach
Mismatched user
demographics Operational risks – Managing day- Re-structure back-office functions by
Workforce integration challenges to-day operations of two different combining those that are aligned such
types of services can come with as HR, accounting, etc. while keeping
Probability of Occurrence

Brand dilution
several challenges those that have less overlap, such as
Sustainability concerns operations separate.
Regulatory challenges
Mismatched user demographics – Be aware of the differing requirements
The user demographics and of each customer base, and cross-sell
Data privacy Investor support requirements of Airbnb and Turo only where relevant. Customers should
might not have significant overlap always have the option to use either
System integration issues service independently.
Legal issues Brand dilution- Combining two Ensure distinct brand identities are
distinct businesses can result in retained and reinforced. Value from the
Adverse market conditions
dilution of the brand identities and acquisition comes from synergies and
confusion among customers cross-selling, not from brand extension.
Reactively User resistance Proactively
Low Manage Monitor
Low Impact of Risk High

Service Service
Growth Plan
Marketing Operational Implementation Risk
Situation
Improvement Expansion Strategy Plan Plan Management
12
Invest Unlock Save
$2.15B
FOR THE ACQUISITION
$40B+ $700M
OVER 5 YEARS
NPV OVER 5 YEARS

Thank you.
Any questions?
13
Appendix I: Superhost interventions step-by-step process will guarantee a superior
customer services for Airbnb guests.
Implementing a superhost support system for emergency situations is a proactive approach to addressing critical issues on the Airbnb platform. Here's a step-by-step process
for how this system could work:
1. Identification of Emergency Situations:
•Airbnb develops a clear set of criteria to identify emergency situations, including scams, safety concerns, serious disputes, and issues that require immediate attention.
2. Notification to Superhosts:
•When an emergency situation is identified, the system automatically notifies a pool of pre-selected superhosts in the area where the booking is taking place.
•Superhosts are chosen based on their positive track record, reliability, and proximity to the affected property.
3. Acceptance by Superhost:
•Superhosts receive a notification and have the option to accept or decline the request for on-site support.
•Accepting the request implies their willingness to assist with the emergency situation.
4. Communication with Guest:
•Once a superhost accepts the request, they are connected with the guest involved in the emergency.
•The superhost communicates with the guest to understand the nature of the problem and provide immediate assistance.
5. On-Site Assessment:
•The superhost visits the property to assess the situation firsthand.
•They document the issues, take photos if necessary, and gather information to share with Airbnb's customer service team.
6. Communication with Customer Service:
•The superhost communicates with Airbnb's customer service team to provide real-time updates on the situation.
•They collaborate with customer service to determine the best course of action, which may include facilitating a resolution, arranging alternative accommodation, or providing
other necessary support.
7. Resolution and Support Implementation:
•Based on the information provided by the superhost, Airbnb's customer service team implements the necessary steps to resolve the emergency.
•This may involve issuing refunds, mediating disputes, or taking other actions to address the guest's concerns.
8. Feedback and Improvement:
•After the emergency situation is resolved, both the guest and the superhost are encouraged to provide feedback on the experience.
•Airbnb uses this feedback to continuously improve the superhost support system and address any areas for enhancement.
9. Recognition and Compensation for Superhosts:
•Superhosts who provide exceptional support during emergency situations are recognized by Airbnb.
•Airbnb may offer compensation, incentives, or special recognition to these superhosts as a token of appreciation for their assistance.
Appendix II: Post-acquisition our marketing mix and thorough 4C analysis will help
leverage the strength of both brands to provide a unique experience for our users.

Product Place
The merged Airbnb and Turo platform offers a comprehensive The merged platform ensures global accessibility,
travel solution, combining budget-friendly accommodations from allowing travelers to find accommodations and rent cars
Airbnb with a diverse fleet of vehicles from Turo. Travelers can anywhere in the world. The peer-to-peer model of Turo
seamlessly plan and book both their stay and transportation in one enhances local experiences, and the decentralized
place, ensuring a hassle-free and cost-effective travel experience. approach means travelers can access both services
without the need for traditional agencies.
TARGET
Price MARKET Promotion
The unified platform provides consistent cost savings The platform leverages personalized landing pages
across accommodations and car rentals. Exclusive based on past visits, showcasing popular spots and
bundled discounts for combined bookings enhance vehicles rented by similar profiles. Exclusive social
the value proposition, appealing to Gen Xers and media promotions highlight bundled deals,
Millennials seeking affordability and savings. encouraging engagement and responsiveness
among the target audience.

4C Analysis
• Existing business model and • Brings simplicity to side- • •
Advertising Local businesses and services
software for asset-sharing hustles
Company • Ability to acquire major • Based in San Francisco
Collaborators • Hosts • Payment processors
• Insurance agencies • Governments and regulatory bodies
competitors

• Travelers • "Greenwashed out” • Post-COVID travel recovery

• Multigen Families • 68% of family travelers experience
Customers • Hosts difficulty when planning their trips Climate • Travel trends surviving and inflation
• Car-owners rates rising

• Turo • Lyft
• Enterprise • Car owners
Competitors • Hertz • getaround
• Uber
Appendix III: Based on strategic and financial fit we compared current peer to peer car
sharing players to identify the best target for our acquisition.

Potential Targets
Customer base, what they have, what are they missing, can we Bubble size shows Turo
EV (or expected 853m

Higher
deal size for private
companies) ($M)

GetAround
59m
help fill gaps organically
STRATEGIC FIT

Hiyacar
Average

SnappCar 35m
230
0.12m
GoMore
16m
Lower

▪ Revenue, products, applications

Strategic ▪ Doable deal without too much dilution
Fit for Our ▪ Assesses assets and business of target
Requirements ▪ Assesses gaps in their business
▪ Potential for organic synergies

Lower Average Higher

FINANCIAL FIT (Revenues, Operating Income)

SOURCE: Company websites, Annual reports, S&P Capital IQ Industry research reports, Team Analysis
16
 Appendix IV: Financial Analysis provided helped us value the company.
AirBnB Standalone Results of Operations ($M)
With Synergies
2021 2022 2023 2024 2025 2026 2027 2028 CAGR
Results of Operations ($M) CAGR 15.8%
Revenue 5,992 8,399 9,859 11,338 12,698 13,968 15,225 16,443 10.8%
2023 2024 2025 2026 2027 2028
YoY Growth 77% 40% 17% 15% 12% 10% 9% 8%
Revenue 10,712 12,550 14,495 16,779 19,402 22,271
Cost & Expenses YoY Growth
Cost of Revenue 1,156 1,499 1,689 1,927 2,159 2,375 2,588 2,795
CoR as a % of Rev 19% 18% 17% 17% 17% 17% 17% 17% Cost & Expenses
Operations & Support 847 1,041 1,172 1,361 1,524 1,676 1,827 1,973 Cost of Revenue 2,088 2,285 2,465 2,660 2,844 2,939
Ops & Sup as a % of Rev 14% 12% 12% 12% 12% 12% 12% 12% CoR as a % of Rev 19% 18% 17% 16% 15% 13%
Product Development 1,425 1,502 1,652 1,927 2,159 2,375 2,588 2,795 Operations & Support 1,247 1,431 1,584 1,732 1,877 2,001
Prod Dev as a % of Rev 24% 18% 17% 17% 17% 17% 17% 17% Ops & Sup as a % of Rev 12% 11% 11% 10% 10% 9%
Sales & Marketing 1,186 1,516 1,715 1,927 2,159 2,375 2,588 2,795 Product Development 1,721 1,982 2,205 2,418 2,627 2,817
S&M as a % of Rev 20% 18% 17% 17% 17% 17% 17% 17% Prod Dev as a % of Rev 16% 16% 15% 14% 14% 13%
General & Administrative 836 950 1,053 1,247 1,397 1,537 1,675 1,809 Sales & Marketing 1,846 2,060 2,272 2,480 2,683 2,848
G&A as a % of Rev 14% 11% 11% 11% 11% 11% 11% 11% S&M as a % of Rev 17% 16% 16% 15% 14% 13%
Restructuring Charges 113 89 - - - - - - General & Administrative 1,218 1,340 1,460 1,584 1,701 1,838
Total Costs & Expenses 5,563 6,597 7,280 8,390 9,397 10,336 11,267 12,168 G&A as a % of Rev 11% 11% 10% 9% 9% 8%
Miscellaneous - - - - -
Income from Operations 429 1,802 2,579 2,948 3,302 3,632 3,959 4,275 Restructuring Charges
43% SGA Total 6,032 6,812 7,521 8,214 8,888 9,505
Other Income/Expense Additional Expenses for Expansion - 136 349 676 1,082 1,615
Interest Income 13 186 677 - - - - - Total Costs & Expenses 8,121 9,233 10,335 11,550 12,815 14,059
Interest Expense (438) (24) (15) - - - - -
Other (304) 25 (59) - - - - - Income from Operations 2,591 3,317 4,160 5,230 6,587 8,212
Total Income/Expense (729) 187 603 - - - - - 24% 26% 29% 31% 34% 37%

Income Before Taxes (300) 1,989 3,182 2,948 3,302 3,632 3,959 4,275 Income Before Taxes 2,591 3,317 4,160 5,230 6,587 8,212
Provision for Income taxes 52 96 (2,634) 265 297 327 356 385
Provision for Income taxes 233 299 374 471 593 739
Net Income/Loss (352) 1,893 5,817 2,683 3,004 3,305 3,602 3,891
24% 24% 24% 24% 24% Net Income/Loss 2,358 3,019 3,786 4,759 5,994 7,473

Financial Modelling 17
Appendix V: Financial Analysis provided helped us assess the profitability of our
investment.
2023 2024 2025 2026 2027 2028 Terminal Value WACC Calculation

Acquisition Cost (2,146) - - - - - Target Capital Structure

Debt-to-Total Capitalization 20.0%
Additional Revenues - 240 688 1,570 2,786 4,271 Equity-to-Total Capitalization 80.0%
Additional Costs - (110) (148) (3) 186 365
Additional Income - 350 836 1,573 2,601 3,906 Cost of Debt

Additional Cash Flows (2,146) 389 928 1,746 2,887 4,335 Cost-of-Debt
Tax Rate
4.986%
25.0%
Net Cash Flows (2,146) 354 772 1,323 1,994 2,731 35,522 After-tax Cost of Debt 3.7%
Cumulative Cash Flows (2,146) (1,792) (1,020) 303 2,297 5,028 40,550
Cost of Equity
Payback Period 2.77 years 4.2%
NPV 40,550 Risk-free Rate (1)
Market Risk Premium (2) 5.7%
IRR 54% Levered Beta 1.22

FCF/EBITDA Ratio 111% -%

Size Premium (3)
WACC 9.7%
Growth Rate to Perpetuity 2% 11.2%
Cost of Equity
Terminal Value PV at 2028 of Cash Flows to Perpetuity 56,399.56
Terminal Value PV at 2023 $35,522.05 WACC 9.7%

Financial Modelling

18