review.firstround.com · 2015-02-04 · 4137d

Design Thinking and Customer-Centric Innovation: How Airbnb Escaped the Trough of Sorrow

Airbnb co-founder Joe Gebbia describes how the company pivoted from near-bankruptcy in 2009 by abandoning the Silicon Valley obsession with scalable solutions and instead embracing non-scalable, customer-centric design thinking. The turning point came when the team traveled to New York to personally upgrade amateur property photos to professional quality, which doubled weekly revenue. The company institutionalized this philosophy through practices like requiring employees to take trips on day one, encouraging 'pirates' to test new ideas, and shipping features rapidly.

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Metrics in this report

Engagement Increase from Star-to-Heart Change

30%

measured

Wishlist feature redesign impact

Revenue Growth from Photo Upgrade

100%

mean

Weekly revenue doubling

Stagnation Period Before Photo Improvement

8months

duration

Time without financial improvement

Weekly Revenue After Photo Upgrade

400$

post-intervention

Airbnb one week after professional photography

Weekly Revenue Before Photo Upgrade

200$

flatlined rate

Airbnb in 2009 across three founders