Airbnb Expands Into Boutique Hotels, Car Rentals & Grocery Delivery

The move comes as the company faces growing restrictions on short-term rentals in several countries.

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Airbnb is expanding beyond home rentals with the addition of boutique hotels, car rentals, and grocery delivery, as the company looks to become a one-stop travel platform

According to AFP, the move comes as the company faces growing restrictions on short-term rentals in several countries, while also seeking to capture more travel spending currently going to competitors like Booking.com and Expedia.

Eighteen years after its beginnings in San Francisco, the company is evolving in response to increasingly strict regulations on short-term stays around the world.

In December 2025, Spain fined Airbnb 65 million euros (approximately RM299 million) for more than 65,000 non-compliant listings, while Barcelona announced it would not renew thousands of rental licences once they expire in 2028.

Meanwhile, New York City has banned nearly all short-term private rentals since 2023, while Paris intensified its crackdown on illegal listings in 2026.

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Image via Reuters/New Straits Times

In a statement on Wednesday, 20 May, Airbnb CEO Brian Chesky introduced several new features coming to the app

"Travel shouldn't just be convenient. It should be meaningful. The best trips help you explore, learn, and come home a little different than when you left," he said.

The updated app now includes grocery delivery, through Instacart in more than 25 cities across the US, as well as airport and train station transfers and luggage storage services in over 160 cities worldwide.

Airbnb will also begin offering car rentals, although the company has yet to announce its partners.

"We know that a home is not right for every type of trip, like if you're booking last minute, you're staying for just one night, you're on a quick business trip, or when you're searching for an Airbnb, like in New York, and none are available… Boo," Chesky joked, referring to the city's restrictions.

"In this case, the best option might just be… a hotel," he added during the announcement at Airbnb's headquarters in San Francisco.

Chesky also said boutique and independent hotels make up around 60% of hotel rooms globally, adding that Airbnb wants to partner with them

"They want an ally, they want a platform designed just for them, so they can compete with the chains," he said.

The app is also introducing several AI-powered features, including a virtual support assistant available in 11 languages.

Airbnb reported revenue of USD2.68 billion (approximately RM10.64 billion) for the first quarter of 2026, up 18% compared to the same period last year.

Penang has also banned all forms of short-term rentals since 2023:
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