Airbnb is a unicorn.
Today, they’re valued at $25.5 billion according to a report from CBI insights.
It has now become a global platform which is turning the traveling experience upside down.
Recently Airbnb declared that it’s going to invest around $5 million into Experiences program and also looking to extend its services by including 200 cities in the United States in 2018.
According to Airbnb, currently, the company is offering over 4000 experiences worldwide, out of which, 1000 are in the USA itself, covering about 50 cities. Since 2017, the bookings have been raised by 2000% with experiences growing at 500%.
Experiences is a part of services by Airbnb to grow further. In 2016, they launched Airbnb Trips, a service which brings activities to tourists in order to stay at a place. However, Airbnb didn’t have millions of guests and hosts when they started out. In fact, you would never call the Airbnb founders ‘lucky’ if you knew the Airbnb Journey.
Looking at the latest report from crunchbase.com, the Airbnb app has secured the top place in the list of the most acquisitive U.S. unicorns as of February 2019. The chart displays the number of known acquisitions made by U.S.-based unicorns which haven’t gone public or gotten acquired (yet).
According to another latest news from TechCrunch, HotelTonight, a leading hotel booking app, has got an interest from Airbnb. Airbnb is planning to acquire HotelTonight, which is one of the biggest apps, helping travelers to arrange last-minute accommodations.
However, today Entrepreneurs have disrupted almost every industry with certain on-demand apps to meet the changing expectations of consumers. This means, there are very few markets left to provide on-demand services. In fact, there are many hotels booking apps and room rental apps already in the market tapping the same market as Airbnb.
So, how can you establish a successful business similar to Airbnb with a brand new room rental app?
The answer actually involves lots of things – analyzing competitors, discovering untapped markets, perfect timing, offering a reliable solution, and so on.
Let’s start with analyzing the competitor – Airbnb.
How Does Airbnb Work?
In a nutshell, Hosts list out their property on Airbnb with factors like pricing, amenities, check-in check-out time, etc. The Airbnb then sends a professional photographer to the property location to take high quality photographs of the property.
Travellers search the Airbnb portal for a property in a city where they want to stay by browsing options according to price, amenities, etc. Once a match found, traveler needs to make a booking through Airbnb where the traveler pays the amount in advance mentioned by the host and additional money as transaction charges.
Host then approves the booking, traveler stays there and lastly the Airbnb transfers the amount to the host after deducting their commission.
Today, Airbnb is present in 34,000+ cities across 190+ countries. In fact, 140,000+ people stay at an Airbnb listed place everyday.
Moreover, there are dozens of apps like Airbnb service the same market.
So, how can you build an app like Airbnb to establish a successful room renting business?
The short answer here is: you shouldn’t!
Because it won’t work.
Airbnb has already won the hearts of millions of people so if you think about it, why would anyone want to switch from Airbnb if you’re providing the same thing?
So, what could be done here?
How can you still create a room rental app like Airbnb and become successful?
Discover New Markets
If you take any on demand startup who made it big, you’ll notice that almost all of them have discovered new markets or tapped the markets which haven’t seen innovation for years.
Take Uber for example. Before Uber app, people used to face trouble at times for finding taxi, but with Uber taxi app, people can easily book a taxi with just few clicks.
There are many more apps like Uber such as Ninja delivery for on demand package delivery or Bevy for on demand liquor delivery. However, the point is, for any on demand delivery app to go viral and used by millions, it needs to solve a problem of an industry that hasn’t seen innovation for years.
So, How can you innovate the room renting industry better than Airbnb?
Well, Here’s The Idea…
Have you heard of Bedly?
It’s a startup that allows people to find and rent houses in a city.
Why we’re telling you about Bedly?
Well because the Bedly is a freshly-brewed startup which hasn’t yet entered in the major markets. Currently it provides its services only in Boston and New York.
It’s almost similar to Airbnb where hosts list their property on Airbnb and travelers book the place according to their interests.
The company is basically solving the finding and renting housing by creating a platform where renters can easily find shared houses or apartments in one of the given city, and landlords can post their property in Bedly’s listing.
How Does Bedly Work?
With Bedly, the renters now do not need to deal with brokers, landlords, property managers, or utility companies. Bedly takes care of it all, from searching for housing and roommates to leasing and payments.
In fact, there is no 12-month lease in Bedly. Renters can rent for a flexible month-to-month stay or fixed term, however long they like.
Furthermore, all Bedly units have high-speed WiFi and utilities, and are fully furnished, from pots to pans and linens. Bedly even pays utilities bills for you so you don’t have to.
For people with houses to rent out, Bedly provides great benefits as well. For example, Bedly reduces the vacancies with bringing more predictable rental revenues.
In addition, the renters that come through Bedly go through a series of background checks to ensure that no issues are raised during the stay. Bedly even handles all phone calls, questions, and concerns by the renters at no cost. This means, landlords face no hassle and they just need to wait for the rent check to arrive every month.
How great it is, right?
So, if you’re planning to build room renting app to enter house renting industry, you should consider creating platform like Bedly.
In fact, Bedly has recently raised $2.7 million funding in series C round. This means, the idea is not so bad and there is a good chance people might adopt such platform in near future for renting houses as they adopted the Airbnb.