Airbnb took a significant step in diversifying its business on Wednesday, announcing the expansion of its app to include boutique hotels, car rentals and food delivery services. The move, which comes 18 years after the company was founded in San Francisco, aims to capture a larger share of travel spending that currently flows to competitors such as Booking.com and Expedia.
The app update integrates grocery delivery via Instacart in more than 25 U.S. cities, as well as offering transfers from airports and train stations, and luggage storage in over 160 locations worldwide. Car rentals will also be available, though the company has not yet disclosed its partners in that area.
The move comes amid increasingly intense regulatory pressure on short-term rentals in key markets. In December, Spain fined the company $75 million over more than 65,000 listings that violated local rules. Barcelona decided not to renew thousands of rental licenses when they expire in 2028. New York has banned nearly all private short-term rentals since 2023, and Paris stepped up its crackdown on illegal listings in 2026.
Airbnb posted revenue of $2.68 billion in the first quarter of 2026, an 18% increase from the same period a year earlier.