Nextdoor, a social media platform focused on local communities, has been struggling to grow and retain users in recent years. The company's co-founder and CEO, Nirav Tolia, who returned to the helm last year, is determined to turn things around. In an interview, Tolia shared his vision for the platform's revival, which centers around improving the user experience and increasing relevance.

Tolia's return to Nextdoor was prompted by the company's stagnant growth and dwindling advertiser interest. Despite its 100 million verified users, Nextdoor's market capitalization has plummeted to around $1 billion. Tolia, who is also the company's largest individual shareholder, is keenly aware of the challenges ahead. "We've got to prove our value, and that's something that starts with a better product that proves more value for our users," he said.

One of the key areas Tolia is focusing on is improving the platform's content. Nextdoor has traditionally relied on user-generated content, but Tolia believes that this approach has limitations. "Neighbors don't always have the broad range of information that you're looking for," he explained. To address this, the company is introducing new content from various sources, including local businesses, schools, and influencers. This move is aimed at broadening the platform's value proposition and making it more appealing to users.

Another major challenge Nextdoor faces is managing the tone and quality of user conversations. Tolia acknowledged that the platform has struggled with misinformation, racism, and petty bickering in the past. To combat this, the company is leveraging artificial intelligence (AI) tools to promote more constructive and positive interactions. Tolia is optimistic about the potential of AI to improve the user experience, stating that "with the advent of AI, there is going to be more technology leverage than there ever has been."

In addition to these efforts, Tolia is also exploring ways to increase Nextdoor's relevance and appeal. The company has developed a proprietary AI technology, which it uses to analyze user behavior and provide more targeted content. Tolia is adamant that Nextdoor's unique value proposition lies in its proprietary data, which sets it apart from other social media platforms. "If you can find Nextdoor content, whether it's Google or OpenAI or Microsoft Passport, why would you come to Nextdoor?" he asked rhetorically.

Despite the challenges ahead, Tolia remains confident in Nextdoor's potential. He believes that the company's decision to go public was a crucial step in its growth, as it allows for more transparency and accountability. When asked about the possibility of taking Nextdoor private again, Tolia expressed reservations, citing the limitations of being a private company. "When you're a public company, you are tracked more closely. You do have more skepticism around you. And there are people who care deeply about short-term performance as well as long-term, but those are all muscles you need to build anyway," he said.

As Nextdoor navigates its turnaround efforts, the company's relationship with its investors will be crucial. Tolia and Benchmark, the company's largest institutional shareholder, have maintained a strong working relationship, despite past disagreements. The recent investment by Cathie Wood's Ark Investment Management, which acquired a 4% stake in Nextdoor's Class A shares, is seen as a positive development. Tolia expressed gratitude for the investment, stating that it's a vote of confidence in the company's potential.

In conclusion, Nextdoor's turnaround efforts are a complex and ongoing process. While the company faces significant challenges, Tolia's vision for a more relevant and user-friendly platform is a promising step forward. As the social media landscape continues to evolve, Nextdoor's ability to adapt and innovate will be crucial to its survival and success.