Is Wimdu and 9flats marketable?
Silence has been covering the real estate brokers of 9flats.com and Wimdu in the past months, both agents who have been copying the accommodation service like Airbnb. To break the silence, Holger Schmidt from Focus Online started a new topic about the Exit problem which Wimdu and 9flats.com are facing. He voiced his opinion to the Rocket –Internet –Project of Wimdu and said that “it could be an expensive investment downfall for the Samwer Brothers”. Their apartment agent Wimdu is apparently not marketable. Although according to reports from the experts they invested around 70 to 80 Million Euros for structuring, their chances against the worldwide market leader Airbnb are still rated very low.
Speaking about 9flats.com he said that “also the competitors 9flats were on sale for a long time but they found no successor until now although considerably less money was invested in the company. 9flats has also fired employers so that they can cut down costs. 9flats is being subsidized by eVenture Capitals, Redpoint Ventures and T Venture. A two-digit million amount has flown into the start-up company until now. On the other hand Wimdu collected a remarkable sum of 90 Million dollars. Because of the enormous financial shot in the arm, both young entrepreneurs have to lay down an Exit plan way above the German conditions to strike a happy medium with the investors.. As it is with joint ventures the largest role model is the potential buyer. Airbrb did not hold to the usual Copycat game, instead, it accelerated into the German market and the rest of the world. Therefore the battle of 9flats.com and Wimdu seems to be hopeless.
The rumor is false
So what do both parties have to say to the rumors? Wimdu reported that “the rumors about our insolvency are false and we are not adding more comments to the negative reports”. But they emphasized that Wimdu is a successful company which has tripled its turnovers and growth perspectives over the past 12 months. That counts Wimdu to one of the leading and successful tourist companies throughout Germany with more than 150.000 offers worldwide.”We offer attractive accommodation as well as City Tours and holidays in classic regions and we are constantly expanding our offers worldwide. “Our long term goal is to be the first choice for accommodation worldwide and offer clients a high quality alternative to Hotels”.
9flat.com founder Stephan Uhrenmacher also commented on the rumors and said that „We were among the pioneers who developed the business model in a large scale in Europe, the business Model is one of the thrilling models I know”. Airbnb are trying to buy the market off but 95% of the consumers are not well acquainted to their Business Model and it resembles a booking platform than a Social Network. They also said that they are expanding further and they are not denying the selling rumors anyway. The question still remains, who will buy 9flat.com or Wimdu?.
Their apartment agent Wimdu is apparently not marketable. Although according to reports from the experts they invested around 70 to 80 Million Euros for structuring, their chances against the worldwide market leader Airbnb are still rated very low.