The analyst who has claimed that Rightmove may be seeking to ‘embed’ itself into estate agencies’ day-to-day management has now told investors that he thinks Zoopla and Rightmove are no longer competing with each other directly.
Yesterday we reported that Anthony Codling of Jefferies had analysed Rightmove’s recent annual report and its services to estate agents, concluding that the portal was increasingly assisting agents on marketing and branding, day-to-day management of IT and digital activities and other ‘back-office’ work.
As a result, it was making itself increasingly indispensible to agents.
Now - in a new note to investors, 24 hours after the Rightmove analysis - Codling returns to the subject of portals but instead looks at both Rightmove and Zoopla, concluding that “whilst Zoopla is keen to explore opportunities in the fertile adjacent markets (such as uSwitch), we sense that Rightmove is seeking to entrench rather than expand, looking to become embedded in its agency customers CRM systems and back office.”
As a result of Zoopla’s increasingly wide range of customer-focussed information - becoming “the Amazon of UK residential” in his words - he says its likely share value and importance to the property industry are likely to increase significantly in the near future because of two reasons.
These are that: “Challenger portal OnTheMarket failing to live up to its own hype of being the UK's number two portal by January 2016 leading to customers returning to Zoopla, and uSwitch continuing to perform ahead of expectations.”
Codling analyses Zoopla’s strategy in his note. He says: “We believe Rightmove is seeking to maintain the support of the UK estate agents, and Zoopla to win the minds of the ultimate end user - the home buyer and home seller. Zoopla also offers CRM services via Zoopla Pro and where consumer minds lead, agent spend may follow.”