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Posts Tagged ‘redfin’

Here’s the latest action:
–Jajah goes after Skype’s turf on eBay
–Nokia buys Navteq, what does Google do?
–YouTube intros Adsense
–Yahoo lags on universal search
–Viacom backs DRM
–Technorati’s new CEO
–Costs of a start-up

ebay-jajah.jpgJajah tries to exploit Skype dissatisfaction, releases button for eBay — Now that eBay has admitted the Skype acquisition didn’t pan out as expected, and that the Skype co-founder Zennstrom has left earlier than the desired retention date of 2008-2009, eBay is probably pretty fed up with the Skype story. Well, Jajah, a competing Internet service, is rubbing it in. It is bringing its new button (see our coverage) eBay, an invading what should be Skype’s turf. As we mentioned, Jajah’s button is perfect for small businesses wanting a toll free 1-800 number, just the sort of customers eBay has, and which Skype was supposed to serve. From Jajah’s statement: “With Buttons, JAJAH goes beyond Skype –beyond the headsets to calls received on all phones, beyond the regular quality concerns and beyond the limitations of the closed nature of the Skype userbase. Unlike other Internet calling solutions, JAJAH Buttons on eBay: 1. assures the merchants privacy 2. can be customized by when they want to receive calls and from what countries 3. it does not require a download, headset, contract or broadband and 4. works on every phone….” The list goes on. here’s an example.

Mobile-phone company Nokia has agreed to acquire electronic mapping company Navteq, for $8.1B– This should shake things up a bit. Google uses the mapping-navigation software from the company, and it comes at a time when Google is about to release a major mobile phone offering (depending on the market, Google will offer varying services; few people believe its actually manufacturing its own phone; it will leave that part to the vendors). Now Nokia has swallowed it, and it could leverage this against Google, or in talks with Google about services offered with its phone. Navteq’s technology is behind vehicle navigation devices and is allowing mobile-phone applications with location-awareness, good for things like shopping, emergency services and targeted advertising. Statement is here.

YouTube introduces Adsense to run alongside videos — It’s just the latest effort by Google to monetize YouTube after it shelled out $1.6 billion for the company.

Yahoo introduces “universal search” features — Yahoo continues to lag behind the rest of the field on innovation on its search results. Google, Ask and Microsoft have all introduced something that has come to be known as “universal search,” or providing all kinds of content in results beyond the traditional ten text links. So now Yahoo jumps on the bandwagon and is now also offering things like video and images in its results when you search for certain things, such as rock bands. It’s also introducing something called “suggestive search,” a technology that guesses what you’re typing in the query box if you’ve already written a word and hesitate for a second. It gives you more clues to what you’re trying to find, and is an obvious feature to offer. Yahoo’s market share in search continues to drop. It won 19.9 percent of total search market share in August, down from 24 percent the same month last year, according to Neilsen/NetRatings.

Technorati gets a new chief executive — The blog search engine has lost its way, recently redesigned its site, but has yet to articulate a clear direction. It’s not certain what a new chief executive Richard Jalichandra can do to help it turn around. Announcement here.

Viacom CEO Phillipe Dauman says company will stand by digital rights management — As companies like Apple and Amazon do their utmost to abandon DRM, Viacom will continue the battle in its support. Speaking at an antipiracy summit, Dauman said that his company prefers to deal with the piracy issue in a free market, rather than introducing new laws. However, he also suggested that piracy might be better addressed through international trade agreements, seemingly implying that sites like the Pirate Bay could be stomped out by placing more pressure on their home countries. Dauman’s speech shows that the internet’s copyright battles are far from over; he called the upcoming court decision on Viacom’s case against YouTube, now owned by Google, a “landmark case that will clarify the rights and responsibilities of all media and content owners.” A decision against Google could carry serious implications for dozens of smaller sites. Via CNET.

Costs of a start-up, broken down Redfin’s Glenn Kelman breaks down the various costs, from rent to salary and more, of a start-up. So when your VCs and advisors are asking you to come up with those dang financial models, you have somewhere to go. Very useful.

[Note: This story was originally published Tuesday evening, but a software bug caused it to disappear. We're publishing again]

Updated

redfin.gifRedfin is one of the more controversial web companies trying to make home buying and selling more profitable. Specifically, it’s cutting out real estate agents.

Eager to do more cutting, it has raised another $12 million, led by venture firm Draper Fisher Jurvetson. It is expanding its listings from most West Coast cities and Boston, now adding the Washington, D.C. metropolitan area.

The company handles the most of the home-buying process online, effectively cutting out real estate agents who perform similar services in person. For sellers, Redfin typically charges a flat fee — of several thousand dollars– which works out to be lower than the percentage-based commission most agents charge. For buyers, the company rebates two-thirds of the commission.

Here’s the kind of headline the Seattle, Wash. company inspires: “Realtors brace for area debut of Web rival Red Fin.”

CEO Glenn Kelman makes no bones about wanting to “disrupt” the real estate industry, which he estimates to be worth over $90 billion. Other large real estate sites, such as Zillow and Trulia, also help users learn more about prospective homes, but don’t take over the role of the broker.

[Clarification:] Redfin’s business model of giving rebates to homebuyers is banned from Oregon, New Jersey and Tennessee. Additionally, the site has been fined by the Pacific Northwest regional listing office of the Multiple Listing Service, a nationwide database of home listings. It has also taken heat from the National Association of Realtors, which in many cases owns local and regional MLS offices. The reason for the fine, Kelman says, is that RedFin was altering the data after receiving it to include independent reviews by its users of the properties.

Kelman has told Congress that the MLS rules hinder innovation (official PDF here).

Realtors also charge that Redfin is taking their money by taking the information from the MLS and using it to more efficiently serve clients.

Even as they scream “unfair,” some argue people want a human touch when looking at buying or selling homes, and that such personal service will appeal to most even if the cost is slightly higher.

The company made more than one million dollars in net revenue last year — after the home-buyer rebates — but has made even more than that during just this past quarter, says Kelman.

This helped spur the investment, no doubt. Kelman said he wanted DFJ because the company needed Silicon Valley connections, and daily exposure to innovations happening here.

Besides DFJ, investors include the Madrona Venture Group, Vulcan Capital and BEV Capital.

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