{"id":337970,"date":"2017-04-10T17:12:30","date_gmt":"2017-04-10T09:12:30","guid":{"rendered":"http:\/\/techcrunch.com\/?p=1474722"},"modified":"2017-04-10T17:12:30","modified_gmt":"2017-04-10T09:12:30","slug":"rakuten-invests-2-8m-in-airbnb-for-business-travel-startup-metroresidences","status":"publish","type":"post","link":"https:\/\/people.utm.my\/asmawisham\/rakuten-invests-2-8m-in-airbnb-for-business-travel-startup-metroresidences\/","title":{"rendered":"Rakuten invests $2.8M in \u2018Airbnb for business travel\u2019 startup MetroResidences"},"content":{"rendered":"

<\/p>\n

Rakuten is getting into the Airbnb for business sector after it invested SG$4 million ($2.8 million) in Singapore-based\u00a0MetroResidences<\/a>.<\/p>\n

MetroResidences was founded in 2014 by\u00a0James Chua and Lester Kang and it matches corporate employees needing to rent for\u00a0a month or more with home owners who seek tenants. It is currently active in Singapore, but has\u00a0plans to expand into Hong Kong and Tokyo using\u00a0this funding, which is the startup\u2019s Series A and takes it to $3.5 million from investors<\/a>\u00a0to date.<\/p>\n

Chua and Kang started out with an Airbnb clone, but they pivoted to business users when they found corporate users\u00a0and HR managers were increasing getting in touch. Likewise, on the real estate side, they realized\u00a0that home owners were happier letting their properties out to professional tenants and for longer stretches than services like Airbnb usually cater to.<\/p>\n

Kang told TechCrunch in an interview that clientele is typically multinational companies who bring staff to Singapore on short-term project work\u00a0for a few months. The service is also caters to newly arrived expats. Typically, these workers are put up in a hotel until their local rental is arranged, but MetroResidences says it is replacing the hotel part of the stay for\u00a0them.<\/p>\n

Beyond the cost saving from avoiding months in a hotel, Kang said that clients also appreciate the convenience. That\u2019s to say that they can pick a property located near their offices, or in a particular part of the city if preferred.<\/p>\n

\"\"<\/p>\n

MetroResidences doesn\u2019t charge a listing fee, instead it takes a cut of the booking which can vary from 10 to 25 percent. Kang said that typically property owners will make 30-40 percent more revenue through the service than usually a regular lettings agency. The company didn\u2019t disclose revenue, but\u00a0it did say that it has rented out over 115,000 room nights from more than 800 corporate clients to date.<\/p>\n

There is other newer competition in the space.\u00a0Airbnb, which pioneered the short-term let concept and is valued at $31 billion<\/a>,\u00a0offers a corporate service \u2014 \u201cAirbnb business travel\u201d<\/a> \u2014 that could be used for similar purposes. Kang explained, however, that it doesn\u2019t cover many services \u2014 such as laundry, washing, ironing or hotel-style concierge \u2014 and\u00a0that\u2019s where he believes his company has the edge.<\/p>\n

\u201cThey [Airbnb] are getting serious with business-ready apartment program,\u201d he explained. \u201cBut with\u00a0large corporates, you can\u2019t tell your guests to go pick up the key from under the flowerpot.\u201d<\/p>\n

MetroResidences, then, is essentially doing the flowerpot key collection and simplifying things, whilst also being very much\u00a0more selective about the kinds of properties that it offers on its platform.<\/p>\n

Rakuten is best known for its retail footprint in Japan, where its services include e-commerce and banking, but the company also has a travel business. Kang said he sees synergies between his business, Rakuten Travel and the central,\u00a0corporate Rakuten company.<\/p>\n

\u201cRakuten\u2019s infrastructure and network in travel segment will be very, very helpful, particularly if we can break into the Japanese market,\u201d he explained.<\/p>\n

On whether this deal might be a precursor to an eventual acquisition, he was less certain.<\/p>\n

\u201cI wouldn\u2019t rule that out as a possibility [in the future] but right now our goal is to regionalize the platform and get into more markets.\u201d<\/p>\n

\"\"<\/p>\n

One issue impacting short-term home lettings in Asia is regulation. Recent legislation in Singapore<\/a>\u00a0made renting accommodation for less than six months illegal without the approval of authorities, although the rule isn\u2019t yet being enforced with vigor and there is talk of a loosening of the specifics.<\/p>\n

\u201cSome clients will be concerned, others won\u2019t be,\u201d Kang said. \u201cWe\u2019re transparent and happy to tell them [of the laws because]\u00a0they see the value in our product.\u201d<\/p>\n

Tokyo, meanwhile, has been mulling shortening its rules on Airbnb-like stays<\/a>, which currently stands at a minimum of\u00a0a month<\/a>.<\/p>\n

\u201cWe\u00a0will be perfectly legal in Tokyo and Hong Kong,\u201d Kang said, adding that he expects to launch in at least one of the cities before the end of 2017. He isn\u2019t saying which one will be first, however.<\/p>\n","protected":false},"excerpt":{"rendered":"

\"\" Rakuten is getting into the Airbnb for business sector after it invested SG$4 million ($2.8 million) in Singapore-based\u00a0MetroResidences. MetroResidences was founded in 2014 by\u00a0James Chua and Lester Kang and it matches corporate employees needing to rent for\u00a0a month or more with home owners who seek tenants. It is currently active in Singapore, but has\u00a0plans to expand into Hong Kong and… Read More<\/a><\/p>\n

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