Airbnb, Etsy, Uber: Acquiring the First Thousand Customers Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Airbnb, Etsy, Uber: Acquiring the First Thousand Customers Case Solution

Introduction:

Startup companies usually compete against each other in order to increase their customers’ base.Over here,the issue is significantly more difficult with new businesses in the sharing economy, which have been launched as platforms in order to connect for providing independent services to customers.

Airbnb, Etsy and Uber have acquired thousands of customers in a very short period of time by using two-sided online platforms, which were determined among the most noteworthy developing web or online startups every where. These commercial centers tried to match the suppliers and demands of assets for rent, physical products or online services with clients.

Among the most well-known two-sided platform shaving rapid growth were Airbnb, Etsy and Uber. They offered short-lived property rentals, assembled merchandise, and auto rides, separately. As two-sided online markets developed to expand, there was a significant impact on the system, which attracted more customers, resulting in an increase in the suppliers for the company as they had to meet the demands of the customers.

If we consider Uber, then it could be said that its platform is two-sided, comparing people who need rides with people who have rides to offer and same idea for Airbnb, which associates people requiring rooms with property owners.In order to launch the platform services, these organizations need to discover clients on both the supply side as well as the demand side.

Therefore, the objective of the case is to determine the platform and marketing strategies of each company, which would increase the number of customers so as to increase the demand. Along with this, it is also important to know the risks and opportunities faced in two sided platform and therefore, strategies should be recommended for further growth to attract the customers by having as trong relationship for a long period.

1. Are Airbnb, Etsy, and Uber’s strategy of short-term property rentals, handcrafted goods, and car rides, respectively likely to be profitable? Why and why not?

Airbnb strategy for renting the properties:

It is observed in the case that Airbnb, Etsy and Uber are making profits from their respective strategies, which include renting homes, handcrafted goods and car rides.

If we consider the information about Airbnb, then it can be said that it allows renting the properties and the businesses as the hosts allow the people to have extra time to use their income to payback their mortgages or loans or rents. Along with this, in 2012, the apartments San Francisco used the renting option to make payment for expenses.

In 2009, when Airbnb was at its initial growth stage, it started analyzing the factors, which did not increase their initial growth. The founders stayed at Airbnb’s flats in order to analyze the reason for less booking rates. They recognized the low-quality photos as the main reason and chose to put time and cash in taking better photographs. This support led to the development and growth of renting apartments.

Along with this, in order to increase the supply of the renting business, the company used email marketing and started to contact people who were listed on the craigslist, which better explains the features and benefits of renting the apartments.

Etsy Strategy for hand crafted goods:

At the point when customers are searching for one of a kind or uniquely crafted products,the Etsy provides trendy website for a business, which allows the customers to make and sell hand crafted or antique goods. With sellers making their own unique products and building their brands on the site, more than 75% of them consider Etsy shop a business.

Etsy, which was established in 2005 and now has 1.5 million active sellers and 21.7 million active buyers as compared to its peers in the same economy. As indicated by the organization's late report, 86% of Etsy’s sellers are ladies, and numerous sellers are custodians with kids at home as most of the sellers work at home and run the business successfully...................

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