Having acquired rental startup PadMapper, Zumper says the combined business will be the largest independent destination for apartment listings in North America.
Fortune.com argues the startup Zumper-PadMapper partnership aims to take on more established competitors in the USA including Zillow, Trulia, and Craigslist.
In its report, Fortune argues it will be a significant challenge for the combined Zumper and PadMapper to challenge the likes of Craigslist.
Craigslist successfully sued PadMapper for including its rental listings on Padmapper’s service which maps aggregated rental listings from the web so users can find houses or apartments according to their location in New York, San Francisco and other cities.
As a result, after prolonged proceedings, PadMapper was forced to stop including Craiglist searches.
Meanwhile Zillow has hundreds of millions of monthly visitors, and Craigslist counts 50 billion page views per month.
According to a TechCrunch report, Zumper has "no interest in branching out to other real estate products that would compete with the likes of Zillow and Redfin, which mostly focus on home buying”.
TechCrunch writer Frederic Lardinois says Zumper CEO Anthemos Georgiades is mostly driven by the idea of making renting easier.
“The company already offers Instant Apply, which makes it easier to apply for an apartment.”
The Fortune.com report agrees there, saying what distinguishes Zumper from Zillow and Craigslist is the ability to submit rental applications through the site, instead of having to fill out paperwork by hand.
Georgiades is quoted as saying his vision for Zumper is for it to be a one-stop-shop for renters, taking them through the entire process, from searching to applying, and then closing their leases for an apartment or home.
Launched in 2012, Zumper already has thousands of renters using the site’s application tool each week.
With the two services combining, Zumper and PadMapper expect to grow to eight to ten million unique visits per month by June.
“We want to make finding your next apartment as easy as booking a hotel,” Georgiades says.
Zumper, which connects brokers and owners with potential renters, makes money by advertising and allowing renters to advertise their listings more prominently on the site.
It has raised $20 million in funding from Kleiner Perkins and Goodwater Capital among others and had 4 million monthly visits to its site in January, up from 50,000 visits two years ago.
The company says it’s on track to bring in $5 million in revenue in 2016, and is aiming to be profitable by September.
TechCrunch.com adds with 'Zumper Pro', the company used to push listings from its agents to other listing sites.
“But with Zumper and PadMapper, we now have a closed loop and don’t need others,” Georgiades tells Frederic Lardinois.
According to Lardinois, Georgiades has stressed there is virtually no overlap between the PadMapper and Zumper audience.
“PadMapper’s audience tends to skew younger and toward millennials, for example, Zumper attracts an older audience (with more money),” he writes.
“Everybody who looks for an apartment will touch our platforms,” Lardinois quotes Georgiades as saying.
Zumper raised money to make the acquisition of PadMapper and plans to raise “a pretty large Series B” when it can show updated combined growth numbers to investors.