Zoopla’s shares rocketed this morning after it announced that it is buying uSwitch, the price comparison website.
It is paying £160m, plus a performance-based earn-out of up to £30m.
Zoopla said that the acquisition brings together “two of the best known and fastest growing digital businesses in the UK”.
It added that Zoopla plans to “to lead innovation in the digital property space by creating a single resource where consumers will research, find and manage their home”.
Zoopla CEO Alex Chesterman said: “This is a transformational deal for our business and our members. With the plans we have to develop our services, consumers will have a single resource for all their property needs and this enhanced engagement with our users will create unique advantages for our members.
“This acquisition is a natural next step in the evolution of property portals, creating the ultimate property platform for our users and the most effective lead generation engine for our members.”
In an email to agents this morning, Chesterman wrote that the acquisition “will result in even greater value for you from our current relationship, at no extra cost. We look forward to continuing to work with you as one of your most valued marketing partners”.
Zoopla also released their H1 results as they announced the acquisition.
The company revealed further agent losses of some 950 branches to OnTheMarket, bringing the total agent losses to 3,900 as at the end of March.
Revenue was £41m.
City analyst William Packer of BNP Paribas Exane reacted by saying that he saw the “synergies between Zoopla and uSwitch as limited” and viewed the agent losses as “a strong negative”.
Zoopla’s shares shot up 30p (16%) in early trading.
Comments (98)
It is ‘interesting’, Robert – that you have been standing alone for months shouting warnings to all about the threat of data use and abuse and received little by way of recognition (the reverse being far more appropriate) – and then some gadgie babbles a bit about some “low-end” portals flogging off data feeds and it gets its own headline page and sets Trevor Mealham off on his one-man advertising tour once again.
WHEN WILL people start to listen to you?
Oh, yeah – when it hurts too much to ignore anymore…
If I need to shave my legs, wear hot pants and high heels and weirdly wiggle my booty up the High street to make my point I will.
I’ve emailed you the SatNav location of my High Street, Robert!
;o)
Thanks Peebee, marketing have suggested an ordinary suit and tie might make more of an impact and attract more attention than a disturbing Pussycat Dollesque routine on that particular High Street.
You and I are going to have to get a grips with Word press smileys, they work of Smile please but not you and I 😉
cracked it! 😆
– wordpress need full text codes rather than shortcut text
Robert – Paul H says I’m unique, remember – so my smileys must be also… ;o)
I have just spotted something that has been niggling at me for 2 days
“Alex Chesterman said: “This is a transformational deal for our business and our members. With the plans we have to develop our services, consumers will have a single resource for all their property needs and this enhanced engagement with our users will create unique advantages for our members.
“This acquisition is a natural next step in the evolution of property portals, creating the ultimate property platform for our users and the most effective lead generation engine for our members.””
This has been repeating and repeating in my head- it is a massive contradiction, a full oxymoron on more than one level. It is a very confident ‘blink’; Alex has blinked first and admitted that service revenue hadn’t crossed his mind. You can’t transition from a set game plan onto to a service provision package if that was the game all along.
“Bong!!!!!” and I know who! People have said that OTM is Primelocation II, Zoopla has just become Think property II.
You know that word I made up the other day Peebee? ‘Autotradification’ that is what is going on here! On so many levels this is newspaper people trying to take hold of and control Agency.
Everything about this indicates a strategic alliance, an unannounced JV between PSG and Zoopla. I might be completely wrong but that statement by Alex is an admission that when he got his hands on Thinkproperty back in 2009 he didn’t have any idea of the things that made it valuable; the opportunity to provide related services to the users. Someone has told him and with so few people knowing or understanding the strategy it becomes obvious who.
I described that confident aggressive post as a blink, on the face of it that statement is saying we are going to be the place for to come. That is a success breeding success statement, true but hollow. Alex needs agents and has to convince agents to come back or stick with Zoopla otherwise he just blew a whole lot of cash buying the No 2 utilities switching firm. The promised benefits haven’t been proven but Alex is telling you it will be unique and will work; that is where it gets oxymoronic- Rightmove can go and work with the #1, # 3, any ranked utilities switching provider and Zoopla’s unique stops being unique and the offering more likely to work better with two No1 providers than a pair of No 2s.
It has to be recognised that at present traditional Agency is still 49:1 dominant in the industry. If you remember back to January it was a Zoopla backer who threw a not small amount of money into the passive intermediary end of the business so one has to wonder why quite so much cash is being thrown at a sector that the individual investors wouldn’t use to sell their own property other as a gimmick. (no sensible anyone risks losing net 8% to save <1%) Someone has given sensible business people the impression that Digitalling Agency (Autotradification) is the future, A story told convincingly by people who have done it before (but leaving out some of the salient details about who really made the various successes successful) would sound like a sure bet, it isn’t! Vebra, Core ,CFP and now Jupix were not successful because of GMG, Digital Autotrader was successful in spite of GMG, Zoopla is a collection of things that have been bought, not created. Every bit of a seemingly whole mountain of success and digital achievement has been built on traditional Agency. Without Agents they have no actual success or future. Alex and PSG currently need agent support but are trying to build themselves to the point where they don’t.
Last summer I got heaps for trying to open out the threats discussion. I couldn’t understand software providers being labelled as a threat, my incredulity was based on my own standards that as a service provider loyalty to the customer comes first. I now know why saas made it onto Ian’s list of threats, not all service providers think as I do.
My other news, I have the worlds first self repairing sim card; twice now Virgin have claimed I have a faulty sim card, according to them their service is fine, it must be the sim. It has repaired itself again and I am full 4 bar, 3G
Robert
It is the first sentence that you refer to that has, as you say, ‘niggled’ since I first read it.
“With the plans we have to develop our services, consumers will have a single resource for all their property needs and this enhanced engagement with our users will create unique advantages for our members.”
To me, this is a sentence in two halves – firstly the reality – “With the plans we have to develop our services, consumers will have a single resource for all their property needs…” – and then the sweetener – chucked in to divert attention and quiet the sheep while the wolves prepare for attack – “…and this enhanced engagement with our users will create unique advantages for our members…”
WHAT “unique advantages”? The main thrust says it all – ‘WE WILL be the ‘one stop shop’. Everything else that Z are creating will drive traffic TO THEM, FOR THEM.
Anyone thinking that Z can create a MoneySupermarket for Estate Agency (thought I’d use a name that people actually know and use rather than uWho?…) are in for a big and most likely costly surprise. And that, in my opinion, includes those that are seemingly heading that way. Look at the problems now surfacing and the monies having to be paid out because ‘x’ deal was actually worse than ‘y’ deal with these comparison sites. Estate Agency IS NOT comparable in the way that juice to your sockets or flame to your boiler is – as Robert has made painfully clear over the years I have read his postings.
BUT… yet again the Z machine seems to be able to convince the masses that it is everyone’s best friend and we should all embrace the change they are enforcing.
And any ‘Members’ believing that they will benefit anything other than ‘a little bit’ and ‘for a short time’ – their blinkers are working overtime. But maybe their short-sighted view is all they need – maybe they are the Agency versions of Chicken Little and see this as first signs of the sky falling in on them – and accept that as the reality.
Robert – you state “Alex and PSG currently need agent support but are trying to build themselves to the point where they don’t.” That’s a very brave statement to make and one which I am sure you thought long and hard about posting.
You have a different viewpoint from the rest of us – and different experience to rely on to back your opinions – but I can see how hard it is for you to make people realise what’s happening before their very eyes – or behind their backs, as the case may be…
Floyd Mayweather up on the ropes listening to the boos he is used to! Boo if you like victory is mine! Excellent.
What could be better than this? Sat here listening to the Mayweather fight (victory unless something mad happens) and comtemplating the Zoopla AM stag rut and the “natural development” of portals.
Final minute, crisp right, hand final seconds, a fantastic fight! Brilliant! 8 rounds to 4!
Ros/readers, please forgive me for quoting this in full but here is post I need to reply to properly, in the middle of a long and active thread where polarised views were being expressed a detailed reply would have been too easily overlooked.
Peebee posted the following so obviously trying to request an examination of what is going on;
Hi Robert
You are absolutely right about the ‘Houser’ malarkey. Luckily for Agents, however, in that instance EYE gave the issue headline attraction and gravity pulled in the masses as a result.
Unfortunately, you do not have that luxury – however I would like to commend and thank you for your committed efforts to shake up and wake up the industry to what is going on in clouds and servers across the land, and as to one alternative future potentially lying ahead of us.
Of course, the ACTUAL future is in our hands. This is your point – and one that we should act on – or we cannot complain about the consequences.
It’s a pity that it’s not ‘front page news’…”
Ros can’t make a front page story without solid evidence, stories have to be factual and correct otherwise she gets the Heavies demanding a retraction or an apology with threats of litigation. What can happen is to spot the opportunity to ask me what I mean by some of my random comments, If I post there is normally something I have spotted.
That ‘Poundland ‘ couple up in Merseyside who were seemingly undone by their own greed was a front page story, go back and look at your comments, look at mine. Someone liked it and moved on, I had spotted a back story that ties everything together.
Some how that couple got a figure in mind, stuck to it and paid a heavy price. Where did Mrs Hunter get her valuation from? Without the detail of what she had or where she lived everyone who commented on the story took the greedy vendor opinion , no doubt those who didn’t comment took the same view.
I tend to look at things differently especially when there is a chance of evidence to support what I know but can’t prove.
By way of a test for my tech it was easy to find out that Mrs Hunter lives in Garrick Street Toxteth. ( Mostly boarded up property) With that extra bit of information left out of the Eye version of the story it is possible to see what has probably gone on; If I were an owner and someone told me the average price of property in Garrick Street Toxteth was £110,282, the other properties in the road are boarded up, mine is nice I am going to think £120,000 is a reasonable figure for my home and any offer below £110,000 an insult. Certainly a passive intermediary or Central Office Agent would take the fee and list the property at that price because the evidence Mrs Hunter wanted to see supported the asking price any anyone not familiar with Garrick Street would think the same.
Where do you think I found the average price of property in Garrick Street is shown as £110,282? Where also do you think Liverpool council got their much lower figure?
That one story show how the skills of Estate Agents are being bypassed, a professional indemnity claim would no doubt have resulted from such a negligent valuation. Additionally the story would have had the usual Agent bashing included.
It shows how FSBO passive intermediaries and central office , value it yourself agents could easily and do take fees from vendors with no hope of selling. The value of local knowledge and an Agent’s duty of care completely over looked and disregarded as having any value.
Online valuation tools are a dangerous menace. Flawed algorithms that have no base in professional valuation being used as a guide by people who are being mislead and deceived.
The front page stories are there but it is no-ones job to tie it all together and do something.
If there is an OTM agent in Liverpool I suspect there is some good press to be had from establishing Mrs Hunter’s full story and investigating who has what PI cover for the information she relied on. Certainly if I were in agency up there it is what I would do. It won’t make me popular with the insurance company or those who might have to compensate Mr and Mrs Hunter but the positive press for the industry and the agency would be worth the effort. Even if it was unsuccessful a claim would at least show how Mr & Mrs Hunter were so easily have been mislead.
It is only by finding out the facts and seeing the evidence can the truth be told, invariably the wait is long but it does come out. It would come out a lot quicker if people would simply ask me to explain. I will either ask a question , explain what I know or as I often do request people get in touch. The people that do understand I am honestly motivated.
Sorry for the essay, blame Peebee!
“Sorry for the essay, blame Peebee!”
EH?? NOW what have I done?
Oh – on second thoughts – cancel that question…
Joking aside – the truth in what you have said is painful. On April 1st The Quirkster issued his then-latest grasp for five-seconds-of-fame and a few column inches, announcing something along the lines that they were introducing robots to take over the work of humans in the homeselling process. The simple fact is that he is a tad late in that respect – I’ve been looking at “valuations” cobbled together by artificial intelligence for years now… every time I visit Z! And if the owner is unhappy with the inhuman version – they have just the answer – insert your own! I make no apologies for re-pasting this comment directly from the Z website:
“Many thanks for the revised valuation with which I am much happier!”
Yeah – I bet you were… didn’t live in TOXTETH by any stretch of the imagination, did you…?
Any online listing, FSBO firm seemingly has no obligation to advise customers. Perhaps that is the bit the justifies an agents fee?
With an Estate Agent a vendor is a client, with PI/ COBB agents they are merely customers who pay a fee for no advice and no comeback.
Have a look at the whole sorry state of a Zoopla valuation for Garrick Street and note just how many inconsistencies there are, Number of properties for sale, number for rent, facts and averages that don’t tie in with each other. Nowhere ( and I am good at maths) could I find any evidence to support the claimed average at £110 k, all of the evidence suggested it to be sub £80,000 at the very, very best.
This single example shows how it appears, as I have often said, to be a random number generator. Perhaps you as a practising Agent can have a look and explain what it means, I don’t have a clue. I did pass the ISVA valuation exam many moons ago so I should, but I don’t.
Hey Rob and PeeBee, just a break from the great data debate:-)…But have you seen the new other website that we all used to post on?? I thought I turnt up at the Zoopla site when I first saw it!!
I have been routing around in the archives there since 4 am! I didn’t pay much attention to the graphics I was looking for the post from September 2012 when I predicted the Hunter case would happen. I do so hope they know a no win no fee solicitor who will look at the case for them. I appreciate the caveats are there (somewhere) but if they relied on wrong information someone could at least hand them back their dignity and offer an explanation of their apparent greed. For our industry it undermines the lunacy of online valuation systems and advice and those who use them to skip out of doing agency properly.
It ‘happened’ last night, Paul H – I thought they’d had a software meltdown or that some nine-year old Venezeulan hacker had c0cked up all the code on the site!
Then I remembered they were bringing out the site revamp with a zillion improvements.
Not what I’d call it – and probably the best reason for me to give up visiting that old tired boozer.
I only go there to fight with the stroppy Landlord and his hangers-on anyway… ;o)
“I only go there to fight with the stroppy landlord and his hanger oner’s”….it’s the only entertainment worth watching on that site old boy;-)
Reading the comments of Robert May and Woodentop on this subject is starting to make me all paranoid.
You do have to ask yourself; why set up a web portal with a name that has nothing to do with property, then acquire a number of established portals that do have property related names and and keep the same non property related name.
I wonder if this whole Alex Chesterman project actually has anything to do with property at all.
I don’t think there is a need for you to be paranoid Paul, you don’t use Zoopla and I am not aware that your software supplier is writing real time data feed that is rumoured to contain a few extra details beyond what is required to advertise a property on the internet. It might be worth asking if they are and the EXACT details of the data transmitted to any portal (I will happily check a data file if you send it through). I would also suggest you read through your Ts &Cs to see what 3rd party permission might be in them. From experience Agents don’t read the order confirmation paperwork for services and software especially renewal paperwork and so sign away protection of data.
One thing I am fairly certain of, your data is not being cleared down from portals once a property completes. I can fairly much track your sales from the traces left on the portals. If I can track yours successes and failures so can your competition.
I will happily run through how your data and your stats can be used against you by aggressive competition if it is made available them. As an example in under 10 minutes on the phone and internet to Peebee’s patch I was fully valuation briefed to go and win instruction off him if that was my intention. I shouldn’t we able to rummage around in his stock drawers quite as easily as I can, I certainly shouldn’t be able to access his completed and with drawn stuff at all.
You haven’t got to be paranoid you have to be aware, astute and protect your data.
Hi Rob, more paranoid about what Zoopla are up to rather than my stock. But I get your point!
A big data purge of AM ex Zoopla /DPG/Thinks would be a start and encouraging members to enquire what not obvious data deal and access is going on. You have already got bigger more establish competition on your patch, do what you do and keep doing it well. There is nowhere they can go to buy the qualities or experience needed to challenge you.
I am not sure if you have seen the latest version, we are just working on a Chrome compatible version (GRRRRRRR!) once we are done there won’t be a need to be on either duopoly site if you don’t want or need to.You know something is good when developers use it in preference to Google!
Hi Robert
You are absolutely right about the ‘Houser’ malarkey. Luckily for Agents, however, in that instance EYE gave the issue headline attraction and gravity pulled in the masses as a result.
Unfortunately, you do not have that luxury – however I would like to commend and thank you for your committed efforts to shake up and wake up the industry to what is going on in clouds and servers across the land, and as to one alternative future potentially lying ahead of us.
Of course, the ACTUAL future is in our hands. This is your point – and one that we should act on – or we cannot complain about the consequences.
It’s a pity that it’s not ‘front page news’…
And not forgetting all those financial institutions mentioned earlier that jumped onto the Estate Agency bandwagon in the 90’s. Where are they now? Far bigger players than Uswitch. All left the market. As the head of Prudential commented way back in 1992 (ish) something along the lines of “Estate Agency is a business like no other, the consumer demands a specialty hands on business model which the FS industry can never provide and should not be in estate agency”. How right he was and why no web portal only agent has ever been able to break into the market. And as for the USA ….. I’ve been over their, corruption and poor service is rife and the public hate it with a vengeance but they still rely on the local high street realtor to market.
“Where are they now? Far bigger players than Uswitch. All left the market” true they did sell back the bit they couldn’t do but one of them is effectively back, still letting you do the speciality hands bit while they???? that is the bit that is uncertain. The bit someone ought to take an interest in.
Thank you for your appreciation, this is a very long and thankless task which just became only a very long one! One day Peebee one day!
I have just been looking at an old daybook from January 2000 when I was discussing additional services with Mark Daruvalla. Please let me predict Insurance and Financial services won’t be too far behind utilities.
Whatever happens just remember it is your (Agents’) data, nothing could or should happen without your say so. That was the observation then and it will be a problem now for anyone doing anything without agents’ full knowledge, consent and cooperation.
Houser caused a storm for not asking, let’s see what happens here. (IMO implied consent is not good enough)
Good luck to anyone getting on the Scillonian this morning! Kalms, slight pressure on the wrist, look at the horizon! A following sea is never good for that crossing. Enjoy the Gig Championships!
Think of the SEO benegits to Zoopla and USwitch. A Zoopla banner on every page will drive traffic to the site and help with their google ranks and Visa Versa. I think for a digital business combining the sites is a massive benefit to them. Robert is right the opportunity to up sell and cross sell is huge.
I have to say these are done of the most myopic comments I have ever read
And isn’t it embarrassing when predictive text robs your posting of any substance.
No overenthusiastic predictive texting here for Mr Shinerock to hang the blame on – just sloppy typing, RA! ;o)
Here here… I’m quite shocked at the half-sighted and naivety of them. It doesn’t give much faith in some of those working in the industry.
Well that’s okay, fine and dandy, 1TB – you don’t actually need any faith in us whatsoever. You have nothing to sell.
You are simply waiting patiently for the right property, at YOUR right price, to magically appear on one of the portals you seem to place all your eggs in the basket of.
Good luck with that.
PeeBee, I can say without a single iota of irony or doubt that you are a moron.
If you own an agency business, you should be ashamed of yourself. If however – as I suspect is the case – someone else is paying you to work in their agency business, they should be ashamed of themselves.
If you work at OTM however, congratulations, you are probably one of their most able members of staff.
I am laughing like a pixie at that, brilliant! trouble is I don’t know whay you have called Peebee a moron off the back of his post.
What is that all about?
EHenderson
You have an opinion and I respect that. We are all allowed one, thanks to our ancestors who fought and died for the right to speak our minds.
I would, however be grateful if you could just give me the faintest clue as to why you have formed this opinion you have chosen to share with us all.
I appreciate that you could have built up this opinion over a period of time – as I struggle to see (and appear not to be the only one…) what is in the above single post that you have been so kind to respond to that would lead you to forming such a precise appraisal of my character – so maybe a few bullet-pointed examples of the reasons for the formulation of my moronic labelling would be in order.
I am sure that some will even agree with you. I’m not even certain whether I would necessarily disagree entirely – but until I have all of the facts before me I am unable to come to that decision.
Thank you in advance.
Sorry – it appears I missed this from yesterday’s request:
Please…?
You haven’t got a rabbit have you Peebee?
Erm… is that an appropriate question, Robert?
Sorry! not at all but I really can’t work what you did or said to provoke such an attack. It is the stock cliche Ehenderson uses (twice yesterday) but only there was no and will be no explanation or apology for the attack. I am happy to apologise for any offence cause. Sorry!
Offence? Quite the opposite, Robert – I was chuckling like the very same pixie when I read it! ;o)
Okay – pwetty pwease…?
EHenderson? ELohesra!
Grow up!
Is this the gentleman that is always found sat at the back at an AGM, that everyone wants to take outside an hang whenever he makes a comment?
You’d struggle, that fella is a sheila… as my old boss would say
Hello Simon, you were doing so well! It isn’t down to me to give you advice but just as this post is addressing you directly why not challenge the short sighted or stupid post/s/ers to which you refer? other wise you end up tarring all of us.
You might think I am the short sighted one , that is fine, I have an agenda and post accordingly. My agenda is to protect agents who haven’t quite spotted what some service suppliers are up to and alerting them to the consequences or potential losses.
You might not like that and can say so, I am more than happy for you to say why not reading service terms is a good thing and why agents should simply pass revenue to business people who are more commercially minded without any thought or regard.
If however you are on about specific fervent support for AM say why that is wrong, I would enjoy the debate. I think AM is great but since its release have expressed my concerns about OTM, the restrictions and agents promotion of the site Some people agree with me, others don’t.
Right now you personally could be doing the whole lettings industry (country) the world of good. You have a good knowledge and passion for protecting lettings from unworkable policy, you know stuff others don’t AM/ OTM is a battle you will not win (I suspect you enjoy it) but giving lettings a voice that can be heard is one you can win and get credit and respect for. How about giving Mr Miliband and his policy advisor the benefit of your passion and knowledge?
Can’t really have the debate ‘over here’ sorry 🙁
Let’s have a meaty topic with perhaps a bit of background reading from 2006 ( see below) and I will gladly come over to yours. As it is I can’t see where to start or join in a debate on the subject.
The Prime Minister has approved the appointment of Campbell Robb to be Director General, Office of the Third Sector (OTS) in the Cabinet Office.
Campbell Robb will be responsible for driving the Government’s strategic approach to enhance and enable a thriving third sector. Working to ministers in the Cabinet Office, Campbell’s role will include:
coordinating work on cross-government delivery programmes to help develop an effective third sector;
working with third sector organisations to help the Government develop sustainable and prosperous communities;
drawing on the strengths of the third sector in helping improve public services;
taking forward the Government’s agenda on encouraging the growth of social enterprise.
Campbell – currently Director of Public Policy at the National Council for Voluntary Organisations (NCVO) – will work to Hilary Armstrong, Chancellor of the Duchy of Lancaster, and Ed Miliband, Minister for the Third Sector, in the Cabinet Office.
Ed Miliband, Minister for the Third Sector, said: ‘I am delighted we have been able to secure the appointment of Campbell Robb. His extensive sector experience means he will be a strong leader for the Office, and I look forward to working closely with him on driving forward our work to enhance and enable a thriving third sector.’
On a serious note…. finally Zoopla actually do something!…. they dig deep and find something that may redirect their business which we estate agents fund…. and it confirms what we know already…. as The Duopoly look after their business and strive to increase income/share price…. UK Estate Agents surely need no further warnings that unless they collectively grasp OnTheMarket.com and build that brand into the No1 Property only focused Portal then our industry is going to be submerged/lost in an online “Comparethemarket” style bun fight!
If ever there was a distress flare signal Zoopla have just sent it…. So, Ladies and Gentleman observe very carefully this early sign as to the direction our industry is being taken in!…. unless collectively we start to manage our industry and Portal Property Brand we will be sucked along a path which diminishes our industry into a mere add-on!
The question shouldn’t be about when to leave Zoopla or why to leave Zoopla…. you should have left Zoopla and we should be concentrating on leaving Rightmove!…. I see RM pushing the Letting side of their Portal Marketing to ensure they build that side further…. as always their business marketing funded by estate agents member fees.
I’ve said it before and yes, I will say it again!…. our industry will either change in terms of how it is portrayed/marketed online because we choose to take it in a Property Focused Direction or we will be sucked along at the whim of The Duopoly and wake up in the not too distant future bemoaning the fact that our industry has been lost forever, having been swallowed up by those only interested in their business…. which brings us back to The Duopoly?…. uSwitch Now!… before it’s too late!
Nice to see someone mention RM, who are keeping quiet. They have been doing something similar and hoping you won’t notice………….
Zoopla now realise that the core OTM members are not going back and OTM is now becoming more and more established. This is not only a defensive move by Zoopla to reshape their business model but also perhaps an admission that they are losing the battle.
Paul this started almost more years ago than I can remember and was a prime motivator why Guardian bought Vebra, Core, CFP and Jupix, and why Lloyds bank are happy to finance an MBO of a business that had effectively given the Golden Goose away in 2008. (To Alex as it happens)
Cast your mind way back to the mid 80’s, why did, banks, building societies and insurance companies pay huge wads of cash to buy into Agency? To serve the public well, and allow their staff to wear white sock and drive about in a Mk1 Golf GTI or BMW 316, nope! they wanted Financial service leads. In the mid 80’s switching utility suppliers didn’t happen , it does now and the most opportune time to switch service suppliers and earn a commission is when people move. Two opportunities exist, the vendor and the buyer are both hot prospects. With a couple of hundred quid commission available on every deal, it tends to put £500 per month per branch into perspective.
Alex isn’t too concerned about losing 25% of his agent audience, this will earn more, as long as the remaining 75% don’t twig what is going on and say “excuse me I think we need to look at our terms and specifically the use of our data for your benefit”
Irrespective of whether a property sells or not workout these stats.
One million properties sold is 2 million properties listed so that is 2 million known vendors, if by the time OTM agents and others who don’t list on Zoopla are discounted there are still about one million potential deals. With a rumoured £250 for a good switch available in commission. That is £500 million potential available. No doubt the conversion rates are known but the figures suggest Alex just did what Alex does, drop onto a bargain from someone who didn’t work out the proper worth of their company.
Ironically that bit is like someone selling their property through an agent who hasn’t spotted the property is a ransom strip to unlock 50 acres of local plan development land.
and entering the OnTheMarket.com Marketing Dept is someone holding the latest poster targeting estate agents…… Drum Roll Pleeeeeese!….. “uSwitch to OnTheMarket.com”
I find it surprising that share prices have gone up…as this move would make me nervous. At this very early stage it smacks a little of desperation and needing to try to crowbar added value that takes a bit of a stretch to see as added value. Still wouldn’t go anywhere near OTM though.
Fairy Nuff, Rivero… OTM isn’t your bag – end of.
…just remember it’s YOUR money they are using to finance this ‘desperation’.
I do not see the sinergy that will bring uSwitch to Z. In my opinion Z should focus on its core strengths which is marketing its property listings and getting leads for their clients. I would focus more on building a community since all sites are becoming more and more social, by for example providing area reviews, etc…
Spoken like a true Spaniard…
There must be a five year time delay in reaching Spain.
Paying Too Much for Gas/Electric/Phones/MovingHouse
uSwitch – enter your current asking price and your estate agency fee – Now click “compare” to see how much you can save by Switching Agent – Up pops the numerous online only agencies backed by Z.
Sorry Peebee, Ric top trumps you with this one!even if it is a bit horse before the cart (Thinks backwards Ric)
The three of you each have a bit of additional info which allows the penny to drop a little louder “BONG!“
All that info they gain by owning a website which people willingly give data to, but not perhaps knowing where else that data will/may be used. Scary but a clever move potentially to capture more and more data.
see above Ric! it isn’t just the portals that agents are sharing their data with. Granted many agents don’t relise they are sharing their data but many are.
Cleaver move. I bet 4,000 agents don’t get a recommendation. ………..
Z and RM are media companies with MANY verticals
Well said Trevor! “BONG!” 98 p more and we will have a pound!
It will be interesting to see what observations are made on this story!
“Zoopla… announced that it is buying uSwitch”
That’s very kind of them – making it easier than ever before for all its remaining Members to move over seamlessly to OTM…! ;o)
If THAT doesn’t get comment of the week I’m not playing anymore! ;o)
Didn’t realise there is a clueless comment of the week.
If there was… you’d be on the leader board and none of us would have a cat’s chance of catching up.
Nice one PeeBee, get my vote. See my post above. Can’t wait to see how the anti OTM brigade are going to come up with an answer to supporting a business that is more than likely going to shaft them some time sooner or later.
Eh?! How did you work that out PeeBee? From what I understand, there ain’t no more movement happening toward OTM, quite the opposite…
Oh, yeah – that would be the “dozens” that supposedly have defected back, I take it.
Funny thing, that. To have a NETT reduction of 950 offices, I guess that means that Z actually lost OVER ONE THOUSAND new offices.
How does you view look now, HarryN?
LESS rosy, perhaps…
Awwww, HarryN – you not like that comment?
Diddums.
In my opinion this should serve as a clear warning to those agents still spending with Zoopla that their intentions, using your money, is to control homeowners. Why is that an issue?, well because it only goes one of two ways: either eventually you pay them for instruction leads or once they have the database, they buy out an online only firm and become a site for the beginning, middle and end user.
I think your sooo right, there is definitely a long term plan with this acquisition.
Yes, and maybe uSwitch will stop simply passing leads to energy companies and instead they will start fracking their own oil.
Maybe the energy companies will set up their own comparison website and put a rule in saying that if you use their price comparison website, you can only use one other. Or maybe they won’t.
Maybe Zoopla will not stop at becoming an agent and they will also become a landlord, buying up all of the property in the world. Maybe they’ll get sick of the extortionate loo roll prices and get into the tissue game [queue maniacal laughter].
RealAgent, get real.
You can try and offer flippant exaggerated scenarios Harry but unfortunately I have highlighted a very real one. Zoopla buys uSwitch, that takes them into the clients properties after sale, is it a leap to expect their ambition to be greater than that? I think not. I’m sorry but only the Zoopla patriots would see it otherwise. It was widely commented that Zooplas reaction, to their now inevitable loss of even more agents was to diversify, this is it. Changing your business model comes one step at a time and this the first step in terms of acquisition to do that.
How does it take Zoopla into the client’s property any more than they are there already? 60,000ish properties sold per month but Zoopla with many millions of visits – it isn’t just people who are active who are using the portals.
The problem with moronic statements like yours is that Rightmove and Zoopla have been inside clients’ homes for the last 10-15 years – on their computer screens! That ship has sailed ‘RealAgent’ (or should read ‘real OTM Rep’).
The very small number of very noisy OTM acolytes who disproportionately post on this forum are sounding like – and demonstrating that – they are firmly stuck in the past.
It would be such a huge change for Rightmove or Zoopla to become an agent that they would only do it if they absolutely had to, and from what I am seeing, they are both a million miles away from that.
Keep on sticking your head in the sand boys – in a year or two you may wake up with no business and the world having moved on.
“How does it take Zoopla into the client’s property any more than they are there already? “ I know this one!
I am noisy but I am not an OTM acolyte. An advert for Uswitch on Rightmove, Zoopla or any of the 95 other property portals is something to be avoided, a button you don’t click or a cleverly positioned curse on a touch screen taking you somewhere you don’t want to go.
Knowing detailed who and when is the difference here. Instead of the many millions of visitors who are simply unknowns; people, numbers, bots or cleverly architected site design. People are people. Zoopla can’t spam their claimed 93,000,000 visitors in 12 weeks if they don’t actually exist but they can target actual home movers.
Remember the Dear Homeowner, your agent is joining OTM furore? This is Dear Homeowner +
The problem with being desperate to call someone else moronic EH is that you don’t think through your arguements properly and you actually back up my point of view. “they would only do that if they absolutely had to” so you accept that it is a possibility if Z lose more agent advertisers then!!
Z are looking at making clients “sticky” which means that after sale they stay with them, its hardly a huge leap is it to see they want to be there when those customers move again and you think they will “give” those leads away. They will either as I have said use them themselves, or charge agents for them.
Oh and perhaps if you were to check out other posts on this site you will see I am not a rep for anyone however convenient that might be for you to think it.
I love posters who tell everyone else they they will “wake up with no business” as it generally means that they personally haven’t actually got a successfull one right now!
Not quite the first bit RA, the 1st bit- getting hold of the combined data feeds of GMW, Vebra, Core and CFP completed mid July 2009. which why I referred to your comment about “once they have the database” they have had the database for 5 years.
I have to thank you for the opportunity of finding this jem posted by Simon Whale who was commenting way back then on the subject …’Size is no guarantee of quality, Baldrick. Most horses are very well endowed, but that does not necessarily make them sensitive lovers. ‘
and here is the 97 other falling pennies to make up the pound!
“In my opinion this should serve as a clear warning to those agents still spending with Zoopla” The 3 of you; Ric, Peebee, Paul H pick one more sentence out of that post and you have got the whole picture. “once they have the database” all of a sudden you know why I keep banging on (7 years come August, specific since September 2012) Forget portals’ subscriptions, protect YOUR data from your service suppliers. They have the database, in some cases they are hosting it with permission to access it and share it with 3rd parties. Now can see how it all fits together.
There are a finite number of sales and tenancy renewals each year but an infinite, on going and lucrative use of your data once it is out of your grasp and control. This is turning the data won by your skill , knowledge and experience into a far more valuable source of retail and financial service opportunity for someone else.
Don’t forget RM have been doing this for years. About time some agents took the blinkers off, while those that never gave it a thought …. wake up. It is your livelihood that at risk. Just look at the closed shops in your street!!!
Wow, Uswitch must be a catch for them. To lose nearly 4000 clients in your existing business and your share price shoots up, its a funny old world !!!
“It is paying £160m, plus a performance-based earn-out of up to £30m.”
WOW!! That, AND a mahoosive reduction in feeders…
…AND the cost of all the stamps they are wasting, writing to tell non-member vendors and Landlords to switch to a Z Agent…
…take this as a warning – nay, GUARANTEE – to those left of BIIIIIG increases coming in your monthly subs!
Interesting development. Was it a surprise or news that they’d lost 4k offices?
Now then!… of course not, it is an update on the running total; a reinforcement but also a balance.
You know how old school magic isn’t impressive when you know how it is done, the poor rabbit is captive and crammed into the Magician’s top hat and then the thought of the soppy cane trick and the show stopper Dove up the sleeve, it all gets a bit much? That is where I am at.
It is about time everybody who cares about their business stops and thinks about what is actually going on and wonders how all of this fits together why this is another predicted bit of a jigsaw. Why the repeated and consistent attempts to prompt thought and consideration shouldn’t be ignored.
I have the luxury of knowing what is going on having been part of it. I understand your scepticism over the impact and future of OTM, can understand the uneasiness at the ‘balance’ often added to stories on here but I also know and understand why Agents Mutual would be a good thing for your business even if OTM it current format and restrictions isn’t. I also know what you are seeing as bias is as I said, balance.
Well they had to do something