Forget Rightmove, we need an Amazon for home buyers
Rightmove has been the dominant force in property portals for almost two decades. Currently the 5th most shorted stock in FTSE by investors, it is the indisputable leader in its field. But the question on everyone’s lips is how much longer this will be the case? asks Babek Ismayli
Disruptors have been seeking to dethrone Rightmove for several years now with suggestions ranging from class actions or boycotts by estate agents to outspending Rightmove in marketing and offering exclusive listings for a limited time. More recently, however, there has been a significant focus from both the investor community and the industry on Homes.com’s acquisition of OnTheMarket, and it looks like their ambitious marketing plan to displace Rightmove from its top position.
Can you really challenge the dominant player?
Displacing a dominant classifieds player like Rightmove with a similar business model is extremely challenging. While competitors can take actions that might have an impact, ultimately, they’re unlikely to be anything more than an annoyance and when it comes to Rightmove, much more will be needed to unseat it from its top position. Why? Because there is simply no compelling reason for home buyers to switch. And it’s this, the opinion of the consumer, that allows Rightmove to continue with its ‘Keep calm and increase fees’ approach.
Identifying the elephant in the room
The surprising thing in all of these machinations is that the home buyer and their experience is at the heart of Rightmove’s success, and yet not a single would-be usurper has factored them into the discussion. Rightmove’s strength has always been its focus on property search. It revolutionised the housing market in 2000 by consolidating listings from newspapers into a single online platform, making it easier for buyers to find available properties. It made finding homes easy, accessible, even if you were looking at a long-distance move, even if you were looking overseas and that’s what the consumer wanted.
Disrupting the disruptor
The singular focus of Rightmove has also become its weakness. The brand’s success, with over 70 per cent profit margins and strong influence over estate agents, has led to complacency. With no pressing need to innovate, Rightmove has stuck to its original model, stopping at the search stage and leaving buyers to navigate the rest of the home-buying process on their own and that doesn’t gel with the seamless, integrated experiences that contemporary consumers expect.
Rightmove is a platform which forces users to juggle multiple service providers with little guidance. It frustrates buyers who are accustomed to the ease and efficiency of digital firms like Amazon and Uber Eats and it’s that frustration that creates openings for other potential players.
To understand the potential for disruption, consider the evolution of e-commerce from old internet classifieds like Gumtree to comprehensive online marketplaces like Amazon. Gumtree provided a centralised platform for classified ads but offered a fragmented experience. Users had to contact sellers, negotiate deals, and handle payments independently. Amazon, on the other hand, integrated product listings, payment processing, and logistics into one seamless platform, making it incredibly easy for consumers to find, purchase, and receive products. This holistic approach set a new standard for convenience and efficiency, making Amazon one of the most loved consumer brands in the world. The future of real estate lies in adapting to the evolving needs of consumers. Just as e-commerce evolved from fragmented classifieds like Gumtree to comprehensive platforms like Amazon, the real estate industry must transition from outdated, disjointed services to integrated, end-to-end solutions. Imagine a world where buying a home is seamless and stress-free. Picture discovering a dream property, viewing it with an agent, securing a mortgage online, and handling all legalities on one platform. This isn’t a distant dream; it’s the future and also the biggest risk for incumbent businesses like Rightmove. They are forced to reinvent themselves, think differently, and take risks – or face becoming the next Blockbuster.
Babek Ismayil is founder and CEO of property transaction platform, OneDome