Purplebricks - Chief Exec ousted, pulls out of Australia, cuts back in USA

googler

"A year ago, Purplebricks’ boast about being a “world-leading” competitor to traditional estate agents sounded cheeky, but not hopelessly so. The would-be UK disrupter had launched in Australia, Canada and the US. In doing so, it caught the eye of Axel Springer. The German publishing company snapped up an 11.5% stake for £125m in March last year, apparently confirming Purplebricks’ status as a rare beast – a UK technology startup worth more than £1bn.

Partnership with Axel Springer “will propel Purplebricks further towards our strategic goals and global ambition”, declared its co-founder and chief executive, Michael Bruce, unwisely.

He has now been pushed out of the company, the victim of a boardroom coup carried out by the chairman, Paul Pindar, with the blessing of major shareholders. For good measure, the Australian operation will be shut and the one in the US will be shrunk."

https://www.theguardian.com/business/nils-pratley-on-finance/2019/may/07/purplebricks-conquer-uk-world-leader-chief-executive-departure

EDIT - sorry, title should read that the FOUNDING Chief Exec has stepped down/been pushed out.

ReadingTim

From the very same article:

There is a lot of goodwill towards Purplebricks. Its formula of low upfront fees, as opposed to commissions expressed as a percentage of the sale price, won’t suit everybody, but it’s useful for everybody that the model exists to serve as a brake on traditional agents’ prices.

Seems like the problem is with the management of one particularly company, rather than the business model of online EAs more generally. You did actually read it didn't you, or was it more than the headline you misunderstood?

googler

ReadingTim wrote: »

Seems like the problem is with the management of one particularly company, rather than the business model of online EAs more generally.

Yes, it's the company I mentioned in the title of my post. The one that over-stretched its expansion plans, that has seen its share price tank over the last few years, and which has just lost its founding executive. I made no mention of general online EA business models.

ReadingTim wrote: »

You did actually read it didn't you, or was it more than the headline you misunderstood?

Their fixed-fee model is old news. The matters above are not.

System

ReadingTim wrote: »

From the very same article:



Seems like the problem is with the management of one particularly company, rather than the business model of online EAs more generally. You did actually read it didn't you, or was it more than the headline you misunderstood?

I think you will find there is a problem with online agencies in general with 3 of the more known ones going bust
Emoov
Tepilo
Home Network
with the others trying to crowdfund investment just to keep trading

Surrey_EA

ReadingTim wrote: »

Seems like the problem is with the management of one particularly company, rather than the business model of online EAs

Perhaps it's both.

The former boss of Emoov believes the online EA business model is too cheap to work.

https://www.propertyindustryeye.com/i-was-wrong-russell-quirk-admits-online-agency-is-too-cheap-to-work/


Purplebricks unlikely to ever be profitable, says analyst:

https://uk.finance.yahoo.com/news/think-neil-woodford-favourite-could-092530572.html

ReadingTim

googler wrote: »

Yes, it's the company I mentioned in the title of my post. The one that over-stretched its expansion plans, that has seen its share price tank over the last few years, and which has just lost its founding executive. I made no mention of general online EA business models.

You made no mention of anything, rather provided a random link, misunderstood headline/summary, and left everyone else wondering what on earth your point was.

Given we're all capable of reading the Guardian, if you want to make a point, perhaps you should consider actually making it?

googler

ReadingTim wrote: »

if you want to make a point, perhaps you should consider actually making it?

Perhaps you should step back from being a self-appointed moderator?

csgohan4

So Op what is the point of this post, anyway different than what I get on my BBC articles?

it's been known Purple bricks aren't very good at having houses sold, selling is fine but their reputation isn't very good, you get what you pay for

googler

csgohan4 wrote: »

So Op what is the point of this post, anyway different than what I get on my BBC articles?

It's news which is relevant to this sub-forum.

Often the question is asked; "Should I use an online agent". I think the departure of the FOUNDING chief exec, drastic cutback in expansion, etc. of this high-profile, advertised everywhere agent is relevant to those who ask this type of question.

Regardless of whether you knew about it from your personal news feed or not.

By all means claim the last word.

ReadingTim

googler wrote: »

Often the question is asked; "Should I use an online agent". I think the departure of the FOUNDING chief exec, drastic cutback in expansion, etc. of this high-profile, advertised everywhere agent is relevant to those who ask this type of question.

So why was it beyond your wit to say this from the outset?:wall:

Crashy_Time

googler wrote: »

Perhaps you should step back from being a self-appointed moderator?

Ouch.....!