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Long term room-rental platform Badi launches its service in NYC

As things stand in many countries, renting houses and whole apartments is relatively straightforward, if you can afford it. But trying to find rooms in those apartments and houses to rent has been chaotic for many years and relies on hugely informal networks. Some startups have launched in recent years to address this problem of finding roommates and rooms for rent as the market becomes more competitive.

Roomi (NYC, raised $17M), Roomster is in NYC, and then there’s SpareRoom. All have appeared to try and capture this growing market. And of course, they have Craigslist and Facebook Marketplace as competitors. 

Then there are other co-living companies include Common, Ollie, Quarters, Startcity, X Social Communities, and WeLive.

Backed by $45 million from U.S. and international investors like Spark Capital and Mangrove Capital, including $30 million from Goodwater Capital as their first investment in a Spanish startup, Badi is a Spanish-born startup (founded in Barcelona by Carlos Pierre) which is a long-term room rental platform, operating in cities like London, Barcelona, Madrid, Berlin.

It’s now launching in New York City, after claiming to have surpassed more than two million users in Europe. Badi says its web and mobile app now features over 300,000 listings. After soft-launching in November of last year, it claims to be growing booking requests by 370%. 

Pierre says: “Every major city around the world is suffering from overcrowdedness and increasing rent prices. The strong interest from the participants in our beta group alongside the findings from our 2020 survey on NYC indicates that city dwellers are warming up to the idea of sharing and co-living arrangements.”

During its beta in NYC, Badi found that the majority think co-living is a growing trend and shared living spaces with shared resources are viewed favorably.

Badi’s main pitch is that it provides a safe and secure communications channel for users to get to know potential roommates without an intermediary, using a visual verification tool for ensuring renters profiles and photos of the rooms and amenities.

It’s serving a need. The United Nations projects that 2.5 billion people will live in cities by 2050. This will cause rents to skyrocket, of course.

WeWork taps Lemonade to offer insurance to WeLive members

WeWork has partnered with Lemonade to provide renters insurance to WeLive members.

WeLive is the residential offering from WeWork, offering members a fully-furnished apartment, complete with amenities like housekeeping, mailroom, and on-site laundry, on a flexible rental schedule. In other words, bicoastal workers or generally nomadic individuals can rent a short-term living space without worrying about all the extras.

As part of that package, WeLive is now offering Lemonade renters insurance to new and existing members.

WeLive currently has two locations — one in New York and one in D.C. — collectively representing more than 400 units. WeWork says that both units are nearly at capacity. The company has plans to open a third location in Seattle Washington by Spring 2020.

Lemonade, meanwhile, is an up-and-coming insurance startup that is rethinking the centuries-old industry. The company’s first big innovation was the digitization of getting insurance. The company uses a chatbot to lead prospective customers through the process in under a minute.

The second piece of Lemoande’s strategy is rooted in the business model. Unlike incumbent insurance providers, Lemonade takes its profit up-front, raking away a percentage of customers’ monthly payments. The rest, however, is set aside to fulfill claims. Whatever goes unclaimed at the end of the year is donated to the charity of each customer’s choice.

To date, Lemonade has raised a total of $180 million. WeWork, on the other hand, has raised just over $9 billion, with a reported valuation as high as $35 billion.

Of course, part of the reason for that lofty valuation is the fact that WeWork is a real estate behemoth, with Re/Code reporting that the company is Manhattan’s second biggest private office tenant. But beyond sheer square footage, WeWork has spent the past few years filling its arsenal with various service providers for its services store.

With 175,000 members (as of end of 2017, so that number is likely much higher now), WeWork has a considerable userbase with which it can negotiate deals with service providers, from enterprise software makers to… well, insurance providers.

Lemonade is likely just the beginning of WeWork’s stretch into developing a suite of services and partnerships for its residential members.

Technology is finally changing the apartment rental experience

Midcentury living room in Manhattan The real estate rental market is a highly localized, relationship-based industry driven largely by individuals living and working in their own cities, causing many to acknowledge the longstanding difficulty of streamlining disruption to this market. In recent years, however, that hasn’t stopped a multitude of innovators from seeking novel ways to improve the process’s efficiency. Read More