In the last month, Zoopla Property Group announced the acquisition of comparison website uSwitch. A massive round of applause to all involved. Well done, hat doffed, what more can we say.
It’s an absolutely spectacular strategic deal that ensures as a team they will be much greater than the sum of their parts. Investors seem to agree with me, as Zoopla’s share price has rocketed up the charts today. Well played Zoopla, well played.
Servicing two sets of customers
Zoopla had previously come under attack from many investors uncertain about the impact that the Agents Mutual website OnThemarket would have. Any doubts must surely now be dispelled. OnTheMarket are still struggling to attain any kind of market share in the property portal market, whilst Zoopla look to have strengthened their position enormously.
Zoopla have two sets of customers. One is the nation of prospective buyers and property porn watchers. The other are estate agents like us, who pay for the ability to list our properties to those eager eyes.
Zoopla has maintained its share of the buyers with traffic volumes increasing month on month. And now dozens of estate agents who left Zoopla to join OnTheMarket appear to be coming back to the fold, if you believe Zoopla’s own reports. Things are looking good over at ZPG headquarters.
Bringing big data together
The coup of attaining uSwitch and its comparison site brings an enormous amount of data together. The synergies between the two are incredible and should result in more people being aware of just how much they are being ripped off for the basic necessities like their broadband, utilities and home insurance. If they can share their data and align it then they will be able to provide some incredibly personalised marketing messages.
For Agents Mutual (the cartel behind OnTheMarket) this will come as a massive blow and must have them thinking “we’re going to need a bigger boat”. They are left staring up at a behemoth that has just added rockets to its arsenal in a war that is looking increasingly one sided.
When people move house what do they need?
Mortgages, home insurance, broadband, gas, electricity, life insurance. All of these are compared on uSwitch and with Zoopla they will have a good idea of who is moving and when. Zoopla average more than a million people per day on their website, so expect to see some cut price advertising extended to uSwitch in the short term and some serious integration in the longer term. The future’s bright, the future’s purple!