My stab at surfacing the metrics relevant to making a halal-ness rating on Airbnb, coinciding with their S-1 filing going public this morning-- while we all eagerly await @secretz's more definitive take. (I've actually attempted to use Rakaan's approach in my analysis below)
Interest income
2020: $23.8m (at 1% of revenue) [1, 2]
2019: $85.9m (2% revenue)
2018: $66.8m (2% revenue)
Interest expense (in service of outstanding debt obligations)
2020: -$107m (-4% revenue) [1, 3]
2019: -$10m (0% revenue)
2018: -$26m (1% revenue)
Business Model
Not a number, but something that needs to be considered [4]. Airbnb's primary business involves operating a marketplace platform that connects hosts with travelers, and the lion's share of their revenue comes from service fees charged on platform bookings. Their business, in my opinion, does not rely on interest as a primary driver for revenue.
So, is it halal? There are no hard rules here, it's a judgement call. I'm just giving you the data you'd need to make your own decision. In my opinion, the interest income and expenses are very small compared to revenue, which tells me that it's not integral to the business operations.
Footnotes
[1] Page 153, Airbnb S-1
[2] 2020 figures include 9 months, from Jan - Sep
[3] After taking out a $2bn loan in Apr '20
[4] Businesses who's primary activity involves interest should be treated more harshly than those whose involvement is incidental.
Note: I'm a noob reading S-1's; if there's a mistake, let me know!
Primary Indicators
Interest income
2020: $23.8m (at 1% of revenue) [1, 2]
2019: $85.9m (2% revenue)
2018: $66.8m (2% revenue)
Interest expense (in service of outstanding debt obligations)
2020: -$107m (-4% revenue) [1, 3]
2019: -$10m (0% revenue)
2018: -$26m (1% revenue)
Business Model
Not a number, but something that needs to be considered [4]. Airbnb's primary business involves operating a marketplace platform that connects hosts with travelers, and the lion's share of their revenue comes from service fees charged on platform bookings. Their business, in my opinion, does not rely on interest as a primary driver for revenue.
So, is it halal? There are no hard rules here, it's a judgement call. I'm just giving you the data you'd need to make your own decision. In my opinion, the interest income and expenses are very small compared to revenue, which tells me that it's not integral to the business operations.
Footnotes
[1] Page 153, Airbnb S-1
[2] 2020 figures include 9 months, from Jan - Sep
[3] After taking out a $2bn loan in Apr '20
[4] Businesses who's primary activity involves interest should be treated more harshly than those whose involvement is incidental.
Note: I'm a noob reading S-1's; if there's a mistake, let me know!