Blueground’s New Funding Round Pushes Flexible Leasing Strategy
A $ 180 million Series C funding round – $ 140 in equity and $ 40 in debt – for high-tech company Blueground will help advance the company’s flexible apartment rental strategy.
Rather than a platform approach like Airbnb, Blueground works directly with owners rather than acting as a marketplace, according to Hank Jonap, the company’s director of real estate in the United States.
“Airbnb is a platform. These are the individuals posting images that may or may not be accurate, ”Jonap told GlobeSt.com. “A lot of difference [between an Airbnb and Blueground] is the reception and concierge service of a hotel as well as the services of a multi-family property. It’s ease of use and efficiency, brand identity and 24-hour support via a dedicated app at the end of the day.
It is also the type of use, with flexibility. People can take an apartment, either directly as an individual or through an employer who posts them for a temporary assignment, for 30 days or more. According to the lease, a person can, on notice, move from one city to another within the same category of accommodation (prices vary depending on the location) and take advantage of combining remote work and travel.
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Blueground was founded in 2013 and launched in the United States in 2017. The company operates 5,000 claimed apartments in 15 cities, including Athens, Istanbul, Dubai, London, Paris, Vienna and six in the United States. markets before the end of the year: Berlin, Madrid and Zurich, ”adds Jonap.
“There are a lot of people in space, but technology is something that separates us,” explains Jonap. “We have tremendous activity not only on the consumer side, but also on the corporate side. This is really anyone can do it. It is to ensure that customers are satisfied and travel within the network.
In other words, the app is big, just like the competition, with 3D tours, pictures, and contacts for help. But despite the emphasis on technology, the operational and brand aspects are just as critical, if not more so. For example, “every city has a local team to make sure you meet your needs and your questions,” says Jonap. “You’re not in LA talking to someone in the Netherlands or anything like that.”
And even when Jonap says “technology is something that separates us [from competitors], he continues, “It’s about getting customers to be satisfied and to travel within the network. “
In other words, while technology facilitates communications, a company has an interest in relying on many strengths to be competitive.