A technology business adviser who has surveyed property portals across the world has praised Rightmove for its determination to become the UK’s dominant portal for homes, and has praised Zoopla for its aggressive approach to acquisitions.
Mike DelPrete, an American who until recently was head of strategy at New Zealand portal Trade Me, has told Property Portal Watch that in the property portal sector most progress is made through mergers and acquisitions.
However, Rightmove has bucked that trend and even so has still reported huge profits, visitor numbers and dominance in the UK market in 2015 it received 17.5 billion page views.
“It focuses squarely on being the UK’s best place to list a home for sale. Period. It invests in that goal alone, year after year, without spending much attention on other business opportunities” DelPrete says.
“It plans to maintain that singular focus as it aims to raise the average monthly revenue per advertiser closer to its target of approximately £2,500, an amount consistent with newspaper advertising in 2007” he continues.
However, he also praises Zoopla for adopting “the most aggressive mergers and acquisitions strategy I found among the major portals.”
He says: “The UK’s number two property portal aims to be the one-stop shop for home buyers and sellers. Its tagline could be ‘Whatever you need, you can find it at Zoopla.’”
He adds that “The firm makes aggressive investments, ranging from seed investments in startups like the one it made in property repair reporting software platform Fixflo to nine-digit acquisitions of mature businesses like its purchase of the home-related services cost comparison digital platform uSwitch. In some cases, Zoopla folds its acquisitions directly into its core business; in its smaller investments, it takes a more hands-off approach.”