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Wimdu

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WIMDU
Wimdu logo
HeadquartersBerlin
OwnerHomeToGo Group
Rocket Internet
URLwimdu.com
CommercialYes
LaunchedMarch 2011; 13 years ago (2011-03)
Current statusOnline
Written inRuby on Rails
Part of a series on
Homestays
Hospitality exchange services
Hospitality for work
Hospitality for money
Home exchange and others

Wimdu, powered by HomeToGo, is an online marketplace for booking lodging, accessible by website and mobile app for iOS and Android.[1] The company does not own any lodging; it is merely a broker and receives commissions from every booking.[2][3][4] It is set up as a "clone" of similar websites.[5][6] Wimdu searches and redirects users to the website that has the relationship with the lodging provider such as Expedia, Booking.com, HomeAway, Vrbo, Hotels.com, TripAdvisor, FlipKey, and Airbnb.

In 2015, the most popular locations booked on Wimdu were: Paris, Rome, London, Amsterdam, New York City, Lisbon, Berlin, Vienna, Split, Croatia, and Barcelona. The top five places in Germany were Berlin, Munich, Cologne, Dresden, and Leipzig.[7]

History

[edit]

The company was founded in 2010 and launched in March 2011. Wimdu was registered as a limited company (Gesellschaft mit beschränkter Haftung, GmbH) in March 2011.[8]

Arne Bleckwenn and Hinrich Dreiling, the founders of Wimdu, previously founded and managed several other startups.[9][10]

In June 2011, it received $90 million in investments from Kinnevik AB, which invested €25 million, and Rocket Internet.[11][12][13][14] At the time, it was the largest investment in a European startup ever.[15]

By May 2011, Wimdu was available in 11 languages.[16]

In May 2011, Wimdu launched a spin-off business for the China market called Airizu.[17]

Shortly after the launch of Wimdu, Airbnb publicity criticized the business model, writing

"A new type of scam has been brought to our attention: Airbnb clones posing as competition. We’ve discovered that these scam artists have a history of copying a website, aggressively poaching from their community, then attempting to sell the company back to the original."[18]

Airbnb considered acquiring Wimdu, but decided against it as Airbnb was uncomfortable with Wimdu's culture and tactics.[19][20][21]

By September 2011, the site was available in 16 languages and offered 25,000 lodging options in more than 100 countries.[22]

In December 2011, WirtschaftsWoche rated Wimdu among the most important startups of 2011.[23]

By 2012, Wimdu claimed to be the biggest social accommodation website from Europe.[24] After the first year in business, Wimdu had booking revenues of $6.6 million per month.[25][26]

In September 2012, due to rising costs, the company fundamentally changed its growth strategy. Activities of international offices were reduced and some employees moved back to the Berlin headquarters.[27][28]

In 2013, Wimdu closed its separate China subsidiary Airizu.[29]

Peer-to-peer property rental companies faced new regulatory requirements beginning in 2013 in Germany.[30]

Wimdu continued its operations in Berlin despite 9flats shutting down its Berlin offices.[31][32]

In January 2013, Rocket Internet evaluated selling the company.[33][34]

In October 2014, the founders Arne Bleckwenn and Hinrich Dreiling left their positions at Wimdu at their own requests, taking positions on the advisory board.[35] The management was handed over to Arne Kahlke und Sören Kress,[36]

In November 2014, Wimdu expanded its activities at its Berlin headquarters.[37]

From 2013 to 2014, bookings on Wimdu increased by 31%.[38] In the first quarter of 2015, sales were up 34%.[39]

In February 2015, Italian conglomerate Mediaset and Wimdu signed a media for equity deal.[40] Mediaset invested "several million euros" in Wimdu and gave it advertising on the Mediaset TV channels.[41] The investment funded expansion[42][43] and by April 2012, Wimdu expanded in Italy, Spain and other Southern European countries.[44]

In April 2016, Berlin adopted a law that restricted private apartment rentals.[45][46] Wimdu then filed a lawsuit against the law, arguing that the law illegally restricts the fundamental rights of hosts.[47][48][49]

In October 2016, the company announced a merger with 9flats.[50][51] In October 2016, 9flats acquired the company.[52]

In December 2016, it was sold to Wyndham Destinations's Novasol brand of Denmark.[53][54][55]

In August 2017, the company had 12,000 listings in Germany, compared to 160,000 for Airbnb.[56]

In May 2018, NovaSol was acquired by Platinum Equity.[57]

In September 2018, it was announced that the website would shut down by the end of the year and all employees were fired.[58][59][60][61]

The company is now part of the HomeToGo Group, also owned by Rocket Internet.[62][63]

Controversies

[edit]

Rocket Internet, which is led by the Samwer brothers and was invested heavily in Wimdu, is renowned for its aggressive entrepreneurship and leadership style.[64][65]

Wimdu has been accused several times of being a clone of Airbnb,[66][67][68] In response, representatives of the company stated that although the concept may seem similar, Wimdu has a unique approach, treating "different countries, different cultures, in different ways".[69] Wimdu offers a "hotel light" experience in a market where Airbnb has the "first mover advantage".[70] Airbnb and Wimdu are competitors, especially in German-speaking Europe.[71]

In January 2016, Wimdu was accused of not assisting hosts with vandalism and Wimdu refused to compensate the owner of a Berlin apartment that had been destroyed, beyond offering a dedicated "insurance" for such damages.[72][73] Wimdu denied the allegations and pointed out that the host had demanded an "excessive refund" in this case.[74] Die Zeit invited experts to check the standard form contract, which was deemed to be unsatisfactory.[75]

On 30 May 2016, a Dutch TV program, Groeten van Max, showed fake images used to advertise lodging. Wimdu refused to comment and expelled the inquirers from its offices.[76]

In April 2018, Paris filed a lawsuit against Wimdu and Airbnb for allowing listings of lodging without specific registration numbers.[77]

References

[edit]
  1. ^ Wauters, Robin (14 June 2011). "Investors Pump $90 Million Into Airbnb Clone Wimdu". TechCrunch.
  2. ^ Wortham, Jenna (25 July 2011). "Room to Rent, via the Web". The New York Times.
  3. ^ Higgins, Michelle (4 January 2012). "19 Web Sites for Travel Savings in 2012". The New York Times.
  4. ^ Choat, Isabel (28 June 2013). "How to find and book a holiday apartment online". The Guardian.
  5. ^ Sanchez, Maricel (16 July 2019). "Imitation simply wasn't enough: A Wimdu post-mortem". EU Startups.
  6. ^ O'Neill, Sean (27 September 2018). "Airbnb Clone Wimdu to Close Despite Having Raised More Than $90 Million". Skift.
  7. ^ Hegenauer, Michael (30 August 2015). "Schläft eigentlich noch irgendjemand im Hotel?" [Does anyone actually sleep in the hotel?]. Die Welt.
  8. ^ "Wimdu GmbH: Company Register". Bundesanzeiger.
  9. ^ "Personen: Arne Bleckwenn". gruenderszene.de (in German).
  10. ^ "Personen: Hinrich Dreiling". gruenderszene.de (in German).
  11. ^ Kerr, Ronny (June 15, 2011). "Airbnb clone Wimdu raises $90 million". Vator.
  12. ^ Wauters, Robin (14 June 2011). "Investors Pump $90 Million Into Airbnb Clone Wimdu". TechCrunch.
  13. ^ "Kinnevik invests EUR 25 million in Wimdu.com" (Press release). Globe Newswire. 15 June 2011.
  14. ^ Hüsing, Alexander (15 June 2011). "Zimmerdreikampf: Wimdu sammelt 90 Millionen US-Dollar ein" [Indoor raid: Wimdu raises $ 90 million]. deutsche-startups.de (in German).
  15. ^ Schmidt, Holger (15 June 2011). "Rekord: Start-Up Wimdu erhält 90 Millionen Dollar Finanzspritze" [Record: Startup Wimdu receives $ 90 million in cash injection]. Frankfurter Allgemeine Zeitung (in German).
  16. ^ "Wimdu.co.uk Sends Individualists on Holiday With a New Platform for Accommodation of all Kinds" (Press release). PR Newswire. 26 May 2011.
  17. ^ Ohr, Thomas (10 May 2011). "Wimdu enters the Chinese market with Airizu". eu-startups.com.
  18. ^ Tsotsis, Alexia (9 June 2011). "Airbnb Freaks Out Over Samwer Clones". TechCrunch.
  19. ^ Rao, Leena (11 October 2013). "Brian Chesky Talks About Why Airbnb Didn't Acquire European Clone Wimdu, Global Growth And More". TechCrunch.
  20. ^ Räth, Georg (14 October 2013). "Airbnb hätte beinahe Wimdu übernommen" [Airbnb almost took over Wimdu]. gruenderszene.de (in German).
  21. ^ Dickey, Megan Rose (16 July 2013). "Airbnb Is Shifting Its Strategy So It Doesn't Crash And Burn". Business Insider.
  22. ^ "Affordable Oktoberfest Accommodations Available Through Wimdu" (Press release). PR Newswire. 6 September 2011.
  23. ^ "Gründer: Die wichtigsten Startups" [The most important startups]. Wirtschaftswoche (in German). 29 December 2011.
  24. ^ Fryatt, Linsey (22 March 2013). "Wimdu vs Airbnb – the battle for Europe hots up ahead of London 2012 Olympics". The Heureka.
  25. ^ Wauters, Robin (22 March 2012). "After one year, Airbnb rival Wimdu is big. How big? $132 million a year big". The Next Web.
  26. ^ Kaczmarek, Joel (22 March 2012). "Wimdu gibt erstmals Zahlen bekannt" [Wimdu announces figures for the first time]. gruenderszene.de (in German).
  27. ^ Hofmann, Alex (19 September 2012). "Wimdu streicht internationale Büros zusammen" [Wimdu cuts international offices]. gruenderszene.de (in German).
  28. ^ Hofmann, Alex (20 September 2012). "Airbnb rival Wimdu confirms cuts to international offices, refocus on Berlin". The Heureka.
  29. ^ Horwitz, Josh (12 July 2013). "Rocket Internet has reportedly shuttered Airizu, its struggling Airbnb clone in China". The Next Web.
  30. ^ Thurm, Frida (27 November 2013). "Auch deutsche Wohnplattformen sollen Daten herausgeben" [German residential platforms should also release data]. Die Zeit (in German).
  31. ^ "Nach Verbot von Ferienwohnungen gibt Vermittler 9flats in Berlin auf" [After the ban on vacation rentals, 9flats gives up in Berlin]. Berliner Morgenpost (in German). 27 November 2013.
  32. ^ Räth, Magdalena (27 November 2013). "Airbnb rival 9flats shuts down office in Berlin". The Heureka.
  33. ^ Räth, Magdalena (29 January 2013). "Wimdu findet keine Abnehmer" [Wimdu finds no buyers]. gruenderszene.de (in German).
  34. ^ Dörner, Stephan (29 January 2013). "Samwer-Brüder werden Wimdu nicht los" [Samwer brothers cannot get rid of Wimdu]. The Wall Street Journal (in German).
  35. ^ Hüsing, Alexander (30 October 2014). "Bleckwenn und Dreiling verlassen Zimmervermittler Wimdu" [Bleckwenn and Dreiling leave broker Wimdu]. deutsche-startups.de (in German).
  36. ^ "Wimdu-Gründer geben Geschäftsführung ab" [Wimdu founders give up management]. gruenderszene.de (in German). 30 October 2014.
  37. ^ "Wo Mitarbeiter von anderen Ländern träumen" [where employees dream of other countries]. deutsche-startups.de (in German). 5 November 2014.
  38. ^ Ohr, Thomas (6 May 2015). "5 unexpected things Rocket Internet's annual report for 2014 reveals". eu-startups.com.
  39. ^ "Apartment rental platform Wimdu on the attack - revenues up 34 percent in first quarter of 2015" (PDF) (Press release). Rocket Internet. 7 May 2015.
  40. ^ Bockenheimer, Johannes (6 February 2015). "Mediaset steigt bei Berliner Zimmervermittler Wimdu ein" [deal Mediaset joins Berlin-based broker Wimdu]. Der Tagesspiegel (in German).
  41. ^ Wirminghaus, Niklas (5 February 2015). "Wimdu schließt Media-Deal mit Berlusconis Sendergruppe" [Wimdu closes media deal with Berlusconi's broadcasting group]. gruenderszene.de (in German).
  42. ^ "Berlusconi-Konzern steigt bei Zimmervermittler Wimdu ein" [Berlusconi Group acquires Wimdu, a room broker]. Berliner Morgenpost (in German). 5 February 2015.
  43. ^ Hegemann, Lisa (6 February 2015). "Wimdu: Werbe-Deal mit Berlusconis Mediaset" [Wimdu: promotional deal with Berlusconi's media set]. WirtschaftsWoche (in German).
  44. ^ Schröder, Miriam (28 April 2015). "Deutsche Urlauber wollen keine Katzen". Handelsblatt (in German).
  45. ^ Eisenring, Christoph (16 April 2016). "Wo Berlin uncool ist" [Where Berlin is uncool]. Neue Zürcher Zeitung (in German).
  46. ^ Rada, Uwe; Schmalz, Sophie; Schneider, Eva (24 April 2016). "Jetzt wird es ernst" [Now it's getting serious]. Die Tageszeitung (in German).
  47. ^ "Portal Wimdu.de klagt gegen Berliner Ferienwohnungsverbot" [The Wimdu.de portal is suing Berlin's holiday apartment ban]. Berliner Morgenpost (in German). 14 April 2016.
  48. ^ "Internetportal klagt gegen Ferienwohnungsverbot in Berlin" [Internet portal complains against ban on holiday apartments in Berlin]. Handelsblatt (in German). 24 April 2016.
  49. ^ "Lawsuits against Berlin's holiday apartment ban failed" [Lawsuits against Berlin's holiday apartment ban failed]. Die Welt (in German). 8 June 2016.
  50. ^ Lomas, Natasha (10 October 2016). "Airbnb rivals Wimdu and 9flats consolidate". TechCrunch.
  51. ^ Sheivachman, Andrew (10 October 2016). "Airbnb's Most Well-Funded European Rival Wimdu Is Acquired by 9flats". Skift.
  52. ^ Sheivachman, Andrew (10 October 2016). "Airbnb's Most Well-Funded European Rival Wimdu Is Acquired by 9flats". Skift.
  53. ^ May, Kevin (5 December 2016). "Wimdu sharing wannabe sold to Wyndham brand Novasol". Phocuswire.
  54. ^ Whyte, Patrick (5 December 2016). "Wyndham Steps Up Investment in Sharing Economy With Two New European Deals". Skift.
  55. ^ Schlautmann, Christoph (10 January 2017). "Vacation Home Firm Snaps Up Wimdu". Handelsblatt.
  56. ^ Höhler, Gerd; Louven, Sandra; Streit, Matthias; Peer, Mathias (26 July 2019). "Tourismus-Metropolen gehen gegen Airbnb und Co. vor" [Tourism metropolises take action against Airbnb and Co.]. Handelsblatt (in German).
  57. ^ "Wyndham Worldwide Announces Completion of its Sale of its European Vacation Rentals Business" (Press release). Platinum Equity. 9 May 2018.
  58. ^ "La pataforma Wimdu no aguanta la competencia y cerrará sus puertas a fin de año" [The Wimdu platform cannot stand the competition and will close its doors at the end of the year] (Press release) (in Spanish). Europa Press. 28 September 2018.
  59. ^ Lunden, Ingrid. "Wimdu, Rocket Internet's Airbnb clone, to shut down this year 'facing significant business challenges'". TechCrunch.
  60. ^ Fox, Linda (8 October 2018). "Shifts in European vacation rental as HomeToGo acquires Casamundo and Wimdu closes". Phocuswire.
  61. ^ Schlenk, Caspar; Penke, Michel; Scherkamp, Hannah (28 September 2018). "Wimdu macht dicht – und entlässt mehr als 100 Mitarbeiter" [Wimdu shuts down - and fires more than 100 employees]. Die Welt.
  62. ^ "Legal, Terms and Conditions & Privacy Policy". Wimdu.
  63. ^ O'Neill, Sean; Schaal, Dennis (5 December 2018). "HomeToGo Buys a Near-Death Tripping in Vacation Rental Rollup". Skift.
  64. ^ Cowan, Matt (2 March 2012). "Inside the clone factory: The story of Germany's Samwer brothers". Wired.
  65. ^ Chafkin, Max (29 May 2012). "Lessons From the World's Most Ruthless Competitor". Inc.
  66. ^ Kaczmarek, Joel (8 April 2011). "Samwers starten Airbnb-Klon Wimdu" [Samwers launch Airbnb clone Wimdu]. gruenderszene.de (in German).
  67. ^ "Internet companies: Attack of the clones". The Economist. 6 August 2011.
  68. ^ Kaczmarek, Joel (10 June 2011). "Airbnb wettert gegen Wimdu(?)" [Airbnb weathered against Wimdu (?)]. gruenderszene.de (in German).
  69. ^ Johnson, Bobbie (21 March 2012). "With Airbnb expanding in Europe, Wimdu cranks it up". Gigaom.
  70. ^ Hüsing, Alexander (29 April 2015). "Wimdu wirft sich vorm Konkurrenten airbnb in den Staub". deutsche-startups.de (in German).
  71. ^ "Airbnb closes Austria operation in battle with Wimdu". TechCrunch. 20 December 2011.
  72. ^ "Wohnungsportal Wimdu lässt Vermieter mit Schäden alleine" [Wimdu housing portal leaves landlords alone with damage]. Die Zeit (in German). 20 January 2016.
  73. ^ "Airbnb-Konkurrent zahlt Vermietern bei Vandalismus keinen Schadensersatz" [Airbnb competitor's company does not pay landlords compensation for vandalism]. Stern (in German). 23 January 2016.
  74. ^ Kyriasoglou, Christina (22 January 2016). "Führt Wimdu seine Kunden in die Irre?" [Is Wimdu misleading his customers?]. gruenderszene.de (in German).
  75. ^ Rohrbeck, Felix (11 February 2016). "Wimdu wehrt sich …" [broker Wimdu defends itself]. Die Zeit (in German).
  76. ^ "Wimdu & waarschuwingsbrief" [Wimdu & warning letter]. Groeten van MAX (in Dutch). 30 May 2016.
  77. ^ Sage, Adam (13 April 2018). "Paris council sues Airbnb for €43m a day". The Times.
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