Nextdoor's Big Bet on AI: Can It Revive the Neighborhood App?

Nextdoor, the neighborhood-focused social media platform, is banking on artificial intelligence to turn things around. The company, which has been around for 15 years, has seen a slowdown in growth and user engagement. Users have been turned off by misinformation, racism, and petty arguments on the platform. Nirav Tolia, the company's founder, is back at the helm to tackle these issues. Tolia has a lot riding on this comeback. He was ousted from the company in 2018 but returned in 2021 when Nextdoor went public. Now, he's the largest individual shareholder, with a market cap of around $1 billion. Tolia believes that Nextdoor's unique data, generated from user interactions, is a key asset. Unlike other platforms, Nextdoor has no plans to sell this data to companies like OpenAI or Google. Tolia is confident about the future, pointing to a 13% increase in weekly active users. He's focusing on improving the platform's relevancy and potential. One of his key strategies is to bring in new content from various sources, not just user-generated content. This includes information from local businesses, schools, and influencers. Tolia acknowledges the challenges of maintaining a constructive and positive environment on the platform. He believes that AI can help monitor and guide user interactions. For instance, Nextdoor uses a "kindness reminder" feature that flags heated language before a post is published. Tolia is optimistic that AI can significantly improve user experiences.The company is also exploring the idea of dedicated groups for political discussions, which are currently not allowed on the main platform. Tolia believes this approach can satisfy users who want to engage in political discussions without disrupting the main feed. Tolia has a strong relationship with Bill Gurley, a longtime board member and venture capitalist. Despite past disagreements, they share a common goal of making Nextdoor successful. Tolia values Gurley's influence and expertise, which he believes are crucial for the company's growth. Tolia also addressed the possibility of taking Nextdoor private again. He believes that being a public company comes with more responsibilities and scrutiny, but it also offers opportunities for long-term growth. He thinks that going private and then going public again would be a step backward. Nextdoor's future depends on proving its value to users, advertisers, and investors. Tolia is committed to improving the platform, which he believes will lead to better financial metrics and a stronger market position. With a market cap of around $1 billion, Nextdoor is still considered a small player in the industry. Tolia is confident that the company can overcome these challenges and achieve its full potential.