Cutting Out Cookie Cutters turns people into worker drones. If an employee has to move to a new city for a few months, he or she will be stuck either in barren, huge apartment complexes or in airbnbs designed for shorter stays. But Zeus allows homeowners to be paid to accommodate temporary workers. Through his managed ownership model, Zeus takes over all the furnishings, the upkeep and the risk of filling the house while the landlords lean back to earn real estate in 23 cities. With more than 150 employees at Zeus, this adds up to 5X With a 90 percent occupancy rate, employers and their talents want more unique, trusted and well-appointed multi-month residences that make them feel at home.
Now, while Airbnb is distracted from the upcoming IPO, Zeus has raised $ 24 million to steal the housing market for corporations. These include a $ 2.5 million Bowery launch, the $ 1
"In the first decade of the school, people used to have two jobs. Now there are four jobs, and they tend to be five, says Kulveer Taggar, co-founder and CEO of Zeus. "We believe that these people will not buy furniture in ten years." He believes that they will pay a premium for holding apartments, which, judging by the explosive popularity of zero-friction on-demand services, seems to be an accurate assessment of our lazy future. In the meantime, Zeus wants to "improve the quantum leap in the experience of trying to rent your home" by simply typing in your address and some details and redeeming checks 10 days later.
Mom buying a house Step 1
"When I sold my first startup, I bought a house for my mother in Vancouver," Taggar recalls. It was a payback for her when she allowed him to convert her old house during his college years to buy an apartment in Mumbai he had rented to earn money. "Although I did not grow up much, my mother was a travel agency and we had to travel a lot," Taggar says. His goal was to live nomadically in homes around the world. Zeus could let others live this dream.
After Oxford and as an analyst at Deutsche Bank, Taggar established the student market Boso before moving to the United States. There, together with his cousin Harjeet Taggar and future Stripe co-founder Patrick Collison, he founded the auction tool Auctomatic, went through Y Combinator and only sold it to Live Current Media for $ 5 million ten months later. This gave him the runway to give his mother a home and to tinker with new ideas.
With the support of Y Combinator, Taggar launched the NFC-triggered Task Launcher Tagstand, which turned into the App Settings Configurator Agent, which relinquished moving app status to the automatic location. But when co-founder Joe Wong moved to Palo Alto an hour south of San Francisco, Taggar was struck by how distracting the process was. The listing and securing of a new tenant was difficult, as well as the search for a medium-term rent, without having to deal with exorbitant prices or sketchy Cragislist. After leading his former co-founder to great success with the integration of Stripe's "Dead-Simple-Payments", Taggar wanted to combine that vision with the easy home sales of OpenDoor to facilitate the rental or rental of a location right away. That brought out Zeus.
Stripe meets OpenDoor to beat Airbnb
To become a Zeus landlord, simply enter your address, how many bedrooms and bathrooms, as well as some aesthetic details and you will receive a monthly quote. Zeus comes in and performs a 250-point quality assessment, gathers floor plans, provides the property and takes care of cleaning and maintenance. It works with partners such as Helix Mattresses, Parachute Sheets and Simple Human Trashcans to get volume discounts. "We took on debt because we had these fixed investments in furniture. It's not as dilutive as selling pure stocks, "Taggar explains.
Zeus quickly finds a tenant thanks to Airbnb notes and relationships with employers such as Darktrace and ZS Associates, which move many employees digital lock codes and receive 24×7 support if something goes wrong with the goal of getting someone to sleep in just 10 days. "T is the property of companies in the summer months or in extended-stay hotels $ 10,000 a month Airbnb is not well suited [for multi-month stays]. "Taggar claims," We're about half the price of traditional corporate housing for a better product and experience. "
Zeus Signs at least two-year leases with landlords and tries to extend them to five years if possible However, no rental charge, as is customary for property managers, does not charge an additional price. For example, Zeus could lease your house for $ 4,000 a month, but gets the first month off and can rent it for $ 5,000, making it $ 60,000, but you pay $ 44,000. This is a decent margin if Zeus can quickly fill the houses and keep their maintenance costs low. There are old-school companies and chains such as Oakwood and Barbary Coast, which usually rent apartments from huge, generic complexes at great prices. A stay of more than 30 days made up 15 percent of Airbnb's business last year, but the platform was not designed for a quiet stay on long-term stays. There are pure marketplaces like UrbanDoor, which do not always take care of the landlord or offer constant rental experiences. And then there are direct competitors such as 130 million dollar funded special, 66 million dollar financed Domio, recently supported by the GV 2nd Address and European companies such as MagicStay, AtHomeHotel and Homelike. With just 330,000 residential units in South Africa, Zeus has plenty of room to grow. The increase in remote work means that companies whose employees were not relocated normally now have to hire workers removed for a month-long sprint. A recession could make companies more costly and cause them to reconsider hiring employees in hotels for months. Regulatory bureaucracy and taxes could discourage landlords from short-term rents and towards shared housing. And the need to expand into new businesses could tempt large vacation platforms such as Airbnb to make space acquisitions – or attempt to destroy Zeus
. The winners are determined in part by those who are the broadest cheapest choice of real estate, but also by whom people feel most comfortable in a new city. That's why Taggar has taken a cue from WeWork by trying to organize more community events for its tenants. Zeus, who often needs friends, could become a favorite by helping people feel part of a neighborhood instead of feeling like a faceless prisoner in a massive block of flats or hotels. This gives the Zeus network the effect when it comes to density in top markets.
Taggar says the biggest challenge is, "I feel I'm running five startups at the same time. Pricing, supply chain, customer service, B2B. We decided to customize everything – our own Property Manager software, our own internal CRM. We believe these benefits go together, but I could be wrong and they could waste time. "
The Advantages of Zeus – Success would go beyond the founder's bank account. "I had friends in New York who had great opportunities in San Francisco, but did not take advantage of the friction movements," Taggar says. If the talent is put where it belongs, more things could be created. And simple housing could make people tend to live abroad temporarily. Taggar concludes, "I think it's a great way to build empathy."