Realogy CEO says Covid-19 “eviscerated” value of Amazon partnership

Installing smart-home products “didn’t make sense” during pandemic

National /
May.May 07, 2020 12:10 PM
Realogy CEO Ryan Schneider and Amazon CEO Jeff Bezos (Credit: Bezos via Paul Morigi/Getty Images for Amazon)

Realogy CEO Ryan Schneider and Amazon CEO Jeff Bezos (Credit: Bezos via Paul Morigi/Getty Images for Amazon)

Realogy’s much-lauded partnership with Amazon is the latest victim of the coronavirus.

The brokerage conglomerate on Thursday announced that it suspended the partnership, dubbed TurnKey. CEO Ryan Schneider said during the company’s first-quarter earnings call that Covid-19 and the need for social distancing “eviscerated” the value of partnership, which offered Realogy buyers up to $5,000 in Amazon smart-home products, as well as deep cleaning services and furniture assembly.

“We and Amazon had a decision point on the next phase in April. In a Covid world, bluntly, it didn’t make sense to continue that pilot,” he said.

When TurnKey was first announced last year, Realogy touted the partnership as an innovation that would “hopefully let people who follow our equity see the future potential of our company.” Initially, Realogy’s stock soared 19 percent before dropping, as analysts said even the blockbuster deal was not a panacea for a company that had struggled with agent retention and debt.

The program was available in 15 markets across the U.S., including Los Angeles, Chicago, Orlando and Tampa.
During the first quarter of 2020, Realogy reported a net loss of $462 million, compared to a net loss of $99 million in 2019.

Revenue rose 6 percent to $1.1 billion, reflecting strong sales volume before the pandemic struck.

As of midday, Realogy stock was trading around $4.50 per share, up from Wednesday’s closing price of $3.70 per share. Both figures are lower than $8.46 per share a year ago.


Related Articles

arrow_forward_ios
Amazon's Jeff Bezos, Google's Sundar Pichai and Facebook's Mark Zuckerberg (Getty, iStock)

Tech giants occupy nearly 600M-sf of US real estate

Tech giants occupy nearly 600M-sf of US real estate
Matthew Dicker, Adam Gordon and Jeff Bezos with 1255 and 12595 Flatlands Avenue (Getty, Brooklyn Logistics Center) 

Amazon inks major warehouse deal in East New York

Amazon inks major warehouse deal in East New York
eXp's Glenn Sanford and Jeff Whiteside

Virtual brokerage eXp notches most profitable quarter ever

Virtual brokerage eXp notches most profitable quarter ever
Howard Lorber (Getty, iStock)

Elliman reports $12M profit in third quarter after a year of heavy losses

Elliman reports $12M profit in third quarter after a year of heavy losses
Amazon's Jeff Bezos, Thor Equities' Joseph Sitt, and 280 Richards Street (Photos via Getty; Thor Equities)

Amazon inks deal for 312K-sf at Thor’s Red Hook warehouse

Amazon inks deal for 312K-sf at Thor’s Red Hook warehouse
Redfin CEO Glenn Kelman (Photos via Redfin; Getty)

Redfin accused of redlining in lawsuit

Redfin accused of redlining in lawsuit
Jeff Bezos (Getty, iStock)

“We are erring on the side of having too much capacity”: Amazon reports massive Q3

“We are erring on the side of having too much capacity”: Amazon reports massive Q3
Amazon CEO Jeff Bezos with (top to bottom) 5 Warehouse Lane in Elmsford in Westchester County, 2300 Linden Boulevard in Brooklyn and 1502 Bassett Avenue in the Bronx (Getty; Google Maps)

Amazon inks three warehouse deals for delivery stations

Amazon inks three warehouse deals for delivery stations
arrow_forward_ios

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

Loading...