Contenders of Airbnb Centralize, Wimdu & 9flats
The world is right now in a digital mode, people are surrounded by technologies. Most of the services are available online, right from ordering a food to booking a flight ticket, everything is available. There was a particular, new idea which most of the people don’t think about it in common. How about sharing your house with people who travel around the world? This was a mode of income for people who were unemployed; it was a ray of hope to them.
A website which is captivating and alluring will get the people to opt for the service and keeps them engaged. The sharing economy, business has set up many websites for rental services. The authenticity of the images of the locations displayed plays a major role. A consumer protection policy will make the customers feel more safe and secure. Insurance for damage control protection for the host’s shack, will lead to more listings on the website.
Wimdu is a Europe based company and 9flats is a German based company. The majority of the listings on Wimdu are apartments, but the insurance doesn’t cover the proprietary’s in the US and Canada. It is one of the highly recommended online accommodation services for a Europe trip as it is famous there. 9flats has the same amount of insurance cover is same as that for Wimdu. Most of the services provided are similar and have bases in Europe.
9flats and wimdu were entrants in the past and famous short term rental providers in European countries. Unfortunately they were unable to make huge profits, as Airbnb was making it colossal. Sharing economy, market is rising in a fast mode and making great profits presently. This industry of sharing economy is here to stay for a long period of time than expected.
The strong contenders of the popular online network for homestay Airbnb have decided to integrate their business together. This collaboration is going to provide more prospects to the emcee’s and the traveler’s. An expectation of making huge profits through this business is in discussion. The clones of “Air Bed and Breakfast” are planning on providing, number of listings which are considerably more.
They were unable to make it as big as their competitor; the reason behind it was the service charge. Wimdu charges a flat 12% guest fee for each booking, and 9flats 15% fee for the hosts. But, it is not the same with Airbnb, it charges from 6% to 12% for the guests and fixed 3% for the hosts which is reasonable enough. That is one of the most prominent reasons for them not able to flourish as expected.
People have been making a lot of complaints against 9flats for not receiving proper payments. There was an update from the firms that due to a computer glitch on their site, they were unable to do so. The development team is working on this issue and fixes it as soon as possible. Many factors are being laid for not having a good business amongst the people.
The companies are facing many issues and are finding it difficult to cope up with it. In the past the firms were unable to make a profitable growth in the sharing economy. There was a sharp incline in their business when it was launched for the first year. It was considered to give a head on and tough competition to Airbnb. Despite a big sum of investment from companies like Rocket Internet, it couldn’t overcome the business model of Airbnb in the US.
Unfortunately, it happened to lay off a few employees from their jobs recently, as the extent of loss was very hulking. Another aspect which these companies are facing is from the law enforcement. There are few states in Europe, which are against the short term rentals. In Berlin there was an embargo for this kind of service unless the host has a city permit.
Amends were charged on the people who were renting out their spaces illegally. Each location in this continent is having a different set of regulations for the sharing economy business people to follow. Certain regulations are liable and are followed, but stringent rules are putting things out of place. It has forced 9flats to relocate from Berlin to Singapore and has headquartered there.
These implications, from the public and the law have led to a major setback and a loss for the companies. Enterprises are trying to scale up the profit ladder back with remodeling their business ideas. New and innovative ideologies are enforced to make the service better for the people. Customer focus is the motto, which they are focused on, at present. It will help them take the business to higher levels and make cost effective growth.
Both Wimdu and 9flats are individual organizations which hold a rental service, for private accommodations in houses of the general public. 9flats has fewer listings 230,000 when compared to other websites. The tie-up will increase listings on the website and will consort more crowds. There are a lot of companies coming up with the same business strategy, but they are considered to be small. The only competition these business tycoons are facing is from Airbnb, it is getting tough for them to win over.
Hence, both the firms have decided to come together to give a clear competition, to its opponent. It has hopes that it will combat the emulation from this most popular short term rental business holder of the world. The listings will be more if combined together and compared with their rival company. It is can be considered as the first step towards success.
The head of the collaborating companies are very delighted to create a revolution in connecting with people. It is said that, this service will be available in 140 countries and has achieved an acquisition of 100 million euros. As of now, the company has around 120 employees and is growing unwaveringly. A joint venture by both the firms has intended to build a strong bond with its ephemeras and journeyers.
One of the biggest advantages which Wimdu has is Quality checked properties. Employees are dispatched to the locations which are listed on the website, to check the quality. An on-site check is done throughout the year to ensure the quality of the houses. Meanwhile, each website has a variety of services available for the hosts and guests.
The twain companies are in sync with each other and are having a great rapport. It is making them as the forerunners of the European business. A path is leading them to a beneficial expansion of their consortiums association. The company has made few statements regarding its merger. It stated that, the neighborhood of the companies will remain the same and the professions of the people in the company will be uncut.
They are expecting investments from the stakeholders of the business market. Strategies will be followed and improvised to deliver a better service to the communities. An advancement of bringing a 9flats application for mobile users is made, as it is available for PC’s.
The base for this takeover of business will be situated in Singapore and will be led by the co-founder of 9flats, Roman Bach. A major change brought in by the company is to reduce the service charges for the guests by 50% almost. Though the booking fee per host will remain fixed and this step has helped them to grow financially.
Author Bio:
Anand Rajendran is the Co-Founder and CEO of Snoota. He is a writer and coffee lover. He has is a graduate in Computer Science and Post Graduate in Entrepreneurship and leadership from Ulyanovsk State University, Russia. He is a passionate blogger & SEO Specialist. Snoota is a software products development company which has launched Stayal Script which is a Airbnb Clone Script with Android and iOS apps.