REB Online is reporting that John McGrath of McGrath Real Estate recently dismissed Squiiz as "wasting their money.” Presenting at an REB Leadership Series event for network bosses, McGrath said he has long believed it is too late for new competitors to challenge REA Group and Domain Group.
REB Online said that McGrath, who is also a Director of the REA Group, told the event "The electronic classified game is over. REA has won and Domain is a strong second competitor."
He went on to say, "REA is making hundreds of millions of dollars, and they’re reinvesting it in technology, people, branding and marketing. They’ve got immense traffic and I think it’s naïve for a new player to think they can come in."
Charles Tarbey, the Chairman of Century 21 also presented to the REB Leadership Series event. REB Online reported that Tarbey said that McGrath had been too quick to dismiss Squiiz, which he said was fighting for recognition in the same way that the two big portals did in their early days.
“We’ve got to remember that we’re the ones who control the data and we’re the ones who feed that data to REA and Domain,” he said.
“It’s a very hard battle, but Squiiz was never designed to compete with REA or Domain. It was designed as a platform for us to consolidate our data as an industry.”
The industry owned Squiiz is likely to take heart from the in-roads its sister site OnTheMarket is making in the UK. They are a new player who has been able to shake up the duopoly of rightmove and zoopla.
In addition, they are probably looking at the Italian industry where the structure changed when casa.it, the REA Group owned former market leader, slid from first place to second place.