Embracing the growth prospects offered by the increasing popularity of the sharing economy, Xiaozhu, dubbed China’s Airbnb, is investing to attract domestic users amid the rise of its US rival.
Kelvin Chen, a Chinese technology veteran who founded Xiaozhu in 2012, said his inspiration came from Airbnb, the US home-sharing start-up that has brought disruptive changes to travelling in the West.
“We have learned a lot from Airbnb. We have the same beliefs [about the sharing economy], but Xiaozhu focuses on domestic travellers instead of inbound tourists. The pool of local users alone is already big enough,” Chen told the South China Morning Post.
He declined to comment on an earlier report saying thatＡAirbnb was in talks to buy Xiaozhu, but he added the company was open to cooperation with other platforms.
Xiaozhu last month raised additional funds in its series C round and completed a D round funding worth a total of US$65 million.
Using our platform, users can rent out their homes to strangers without coming back to open the door, or worrying about housekeeping and security
While home-sharing is still a grey area on the mainland as no clear regulation is in place, Chen is not too anxious considering the government’s support for the sharing economy. The company will keep a close eye on the regulatory framework in future and maintain communications with government officials, he said.
