Expedia acquires two home rental startups in fight with Airbnb

The firm acquired Pillow and ApartmentJet for an undisclosed amount

TRD NATIONAL /
Oct.October 25, 2018 03:30 PM

Expedia CEO Mark Okerstrom (Credit: Expedia Group and iStock)

Online travel booking firm Expedia is increasing its bet on the short-term home rental industry, acquiring startups Pillow and ApartmentJet this week.

Expedia already operates HomeAway, and the latest acquisitions represent a double-barreled attempt at stealing away some of rival Airbnb‘s market share. In a filing with the Securities and Exchange Commission, Expedia said that its latest acquisitions “will contribute to HomeAway’s ability to add an even broader selection of accommodations to its marketplace.” Financial terms of the deal were not disclosed.

The two startups enable property owners to monitor short-term rentals in their buildings. Pillow, which is based in San Francisco, helps tenants to rent their apartments without violating the terms of their leases. The company completed a $13.5 million funding round last year. Its backers include Mayfield, Gary Vaynerchuck, Sterling.VC and Peak Capital Partners. Meanwhile, ApartmentJet, which is based in Chicago, performs background checks on renters and provides insurance coverage. The company previously had a partnership with Airbnb. It raised $1.2 million in a recent funding round.

Expedia bought Homeaway for $3.9 billion in 2015 and quickly upgraded the company’s technology and expanded its offerings from vacation rentals to homes in cities. HomeAway, which raised $505 million before going public in 2011, now operates in 190 countries. It has about 1.7 million listings in total, according to Expedia’s second quarter report.


Related Articles

arrow_forward_ios
From left: Mayor Bill de Blasio, 54 West 39th Street, 62 Grand Street, and 208 West 30th Street (Credit: Google Maps)

The Airbnb crackdown continues: City targets three more buildings

The Airbnb crackdown continues: City targets three more buildings
Mayor Bill de Blasio and Stanley “Skip” Karol, an Airbnb host (Credit: Getty Images and Youtube)

Airbnb host narrowly clears hurdle in First Amendment claim against city

Airbnb host narrowly clears hurdle in First Amendment claim against city
A West Village Airbnb listing (Credit: Airbnb)

Airbnb Luxe launched without listings in one of their biggest potential markets — why?

Airbnb Luxe launched without listings in one of their biggest potential markets — why?
WIll Smith as the Fresh Prince and the Los Angeles mansion (Getty, Airbnb)

Stay at the “Fresh Prince of Bel-Air” mansion for $30/night

Stay at the “Fresh Prince of Bel-Air” mansion for $30/night
HelloFresh’s NYC HQ (Courtesy of Industry City, HelloFresh by Eric Laignel)

HelloFresh inks Industry City deal for content studio

HelloFresh inks Industry City deal for content studio
A rendering of the Climate Solutions Center with Trust for Governors Island CEO Clare Newman and Mayor de Blasio (Rendering via WXY architecture + urban design/bloomimages; Governor's Island; Getty)

Going green: Governors Island could soon house climate center

Going green: Governors Island could soon house climate center
Nightingale’s Eli Schwartz and 111 Wall Street (Credit: Google Maps)

Nightingale, Wafra seek $860M to redevelop 111 Wall Street

Nightingale, Wafra seek $860M to redevelop 111 Wall Street
The Real Deal founder and publisher Amir Korangy and Massey Knakal founder Bob Knakal

JLL’s Bob Knakal on the future of New York

JLL’s Bob Knakal on the future of New York
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...