The biscuit cutting company housing turns people into workers drones. When an employee needs to move to a new city for a few months, they are either trapped in a bland apartment building or trapped in a short stay Airbnbs . But Zeus allows any homeowner to receive remuneration to receive short-term labor for white-collar workers. Through its managed ownership model, Zeus takes on all the risks of furniture, maintenance and filling of houses, while the landlord can take back cash.
Zeus has quietly received $45 million in revenue from renting 900 homes in 23 cities. Thanks to the 130 employees of Zeus, this year has increased fivefold. With a 90% occupancy rate, employers and their talents have proven to be more unique, trustworthy, and well-equipped multi-month homes that actually make them feel at home.
Although Airbnb is about to distract from its initial public offering, Zeus has raised $24 million to steal the corporate housing market. These include Bowery's previous $2.5 million seed round, a new $11.5 million Series A financing led by whose partner Garry Tan has joined the Zeus board and 10 million The dollar's debt pays a fixed cost, such as furniture. The program aims to launch more homes, build better landlord portal software, and build partnerships or internal departments for cleaning and renovation.
"In the first decade of school, people used to have two jobs. Now, it's four jobs, and the trend is five," said Zuls co-founder and CEO Kulveer Taggar. “We believe that after 10 years, these people will not buy furniture.” He imagined that they would pay extra for handheld homes. From the perspective of the popularity of zero-friction on-demand services, this seems to be an accurate assessment of our lazy future. At the same time, Zeus' goal is “to make a major leap in the process of trying to rent a home”, you just need to add some details to the address and cash the check after 10 days.
Buying a house for mom is the first step
"When I sold my first startup, I bought a house for my mom in Vancouver," Taggar recalls. When she asked her to forward her old house in college to buy an apartment in Mumbai, he would rent it to make money, which is a reward. “Although there is not much growth, my mother is a travel agency and we travel a lot,” Taggar said, which inspired his nomadic goals in families around the world. Zeus can let others realize that dream.
After working as an analyst at Oxford University and Deutsche Bank, Taggar established the student market Boso before moving to the United States. There, he and his cousin Harjeet Taggar and future Stripe co-founder Patrick Collison co-founded the auction tool Auctmatic, which went through Y Combinator and sold it to Live Current Media for $5 million in 10 months. This gave him a runway, sent home to his mother, and began to mend new ideas.
With the support of Y Combinator, Taggar launched the NFC-triggered task launcher Tagstand, which moved to the application settings configurator agent and converted to automatic location sharing application state. But when his co-founder Joe Wong had to move south from San Francisco to Palo Alto for an hour, Taggar was distracted by the process. Listing and protecting new tenants is difficult because you find mid-term leases without having to deal with excessive prices or a rough Cragilist. Seeing his former co-founder's success in Stripe's simple payment integration, Taggar hopes to combine this vision with OpenDoor's simple home sales to instantly rent or rent a place. That gave birth to Zeus.
Stripe meets OpenDoor to defeat Airbnb
To become Zeus landlord, you only need to enter your address, the number of rooms and bathrooms, and some aesthetic specifications, you can get a monthly offer. Zeus comes in and conducts a 250-point quality assessment, collects floor plans, provides properties, and handles cleaning and maintenance. It works with partners such as Helix mattresses, parachute boards and Simple Human trash cans to get volume pricing. “We have increased our debt because we have made these fixed investments in furniture. It is not as dilutive as the sale of pure equity,” explains Taggar.
Due to Airbnb's listing and relationships with employers such as Darktrace and ZS Associates, Zeus quickly found tenants, and many employees are moving around. After a background check, tenants can get a digital lock code and get round-the-clock support, just in case something doesn't look right. The goal is to let people sleep there in just 10 days. "T Traditional corporate housing in the summer or extended stay hotel for $10,000 per month. Airbnb is not suitable for [for multi-month stays]. "Tagga claims. “In order to get a better product and a better experience, our price is only half that of traditional corporate housing.”
Zeus signed a lease with the landlord for at least two years and extended it to five years as much as possible. It provides a free monthly rent for the property manager at no extra charge. For example, Zeus may rent your home for $4,000 a month, but rent it for free for the first month and rent it for $5,000, so it earns $60,000 but pays $44,000. If Zeus can get the home quickly and maintain its maintenance costs, it will be a neat edge.
Luis Caviglia of Zeus customer Meitre wrote: “Zeus has been helping my company to relocate to the Bay Area and receive visitors from abroad when we settle.” I particularly like the "hard truth" in every property and the support we received when we had problems during our stay."
at home, anywhere
There are many competitors in the United States who are chasing this $18 billion market. Incumbent companies and chain stores such as Oakwood and the Barbary Coast typically rent apartments from large general-purpose facilities at high interest rates. Last year, more than 30 days accounted for 15% of Airbnb's business, but the platform was not designed for long-term accommodation. A pure market like UrbanDoor doesn't always take care of everything for the landlord or provide a consistent tenant experience. Then there are direct competitors like the $130 million funded Sonder, the $66 million funded Domio, the second address recently supported by GV, and Europeans like MagicStay, AtHomeHotel and Homelike.
But there are a lot of pies. With only 330,000 housing units in SF, Zeus has a lot of room for development. The rise of telework means that companies that employees do not usually relocate may now need to bring teleworkers to sprint for months. The recession may make companies more cautious, causing them to reconsider working in hotels for months. Regulatory red tape and taxes can scare the landlord away from short-term rents and combined housing. And the need to expand into new business may attract large vacation rental platforms like Airbnb to make acquisitions in the field – or try to smash Zeus
The winners will be determined in part by who has the widest and cheapest property choices, but it also allows people to feel most comfortable in the new city. That's why Taggar gets inspiration from WeWork by trying to arrange more community activities for its tenants. Often in need of friends, Zeus can become a favorite by helping people feel part of the community rather than faceless prisoners in a huge apartment building or hotel. If it can develop density in the top market, Zeus can provide network effects.
Taggar said the biggest challenge is "I think I ran five startups at once. Pricing, supply chain, customer service, B2B. We decided to make everything custom – our own property manager software, our own internal CRM. We think these advantages are complicated, but I may be wrong, they may waste energy."
Zeus The benefits of success will exceed the founder's bank account. “My friends in New York got a good chance in San Francisco, but they didn’t accept them because of the friction of the move,” Taggar said. Routing talent in the place where it belongs can get more. Easy housing may make it easier for people to live abroad. Taggara concluded, "I think this is a good way to build empathy."