Wednesday, August 10, 2011

Reducing room rental risks after #ransackgate

In March this year, teen celebrity Justin Bieber’s hotel room was broken into by a pair of over-enthusiastic female fans, who were able to take photos of his personal belongings before being ejected by security personnel. Of course, if Justin Bieber can’t keep teen girls out of his five-star hotel room, what sort of privacy could I hope for in my musty, modestly priced budget hotel? After all, the location of hotels are permanent, as are all the exits, and staff turnover is high from off to peak season. When a pair of teen girls wanted to know what Justin Bieber has in his suitcase, all it took was misdirected ingenuity and a pair of housekeeping uniforms, all easily obtained.

As recently as two years ago, there was very little anyone could do about their personal safety short of splurging on a top hotel. You had to trust that your chosen hotel would take care of your welfare in a foreign land, possibly speaking a foreign language, where even the phone wouldn’t work unless you asked permission from the operator.

Fortunately, where there’s a will, there’s a consumer-internet tech startup. Companies like 9flats and airbnb are now places where anyone can find affordable private accommodation in a foreign city, secure in the knowledge that your host is a responsive, friendly local who is able and willing to help you, sometimes for the positive guest review, often simply because they’re great people.

I’d be lying if I didn’t say that this model carries its own risks. However, unlike in hotels, these risks can be mitigated effectively. There are two types of major risks.

Sometimes guests will be presented with a room or apartment that wasn’t what they expected from photos. Sophisticated scam artists can list rooms and request upfront payment to a foreign bank account, and vanish on payment. At 9flats, we vigorously vet every single listing that goes live on our system for authenticity, and hold guest payments in escrow until the guest arrives at the apartment and finds it in order. Guest reviews ensure that hosts are properly credited for a memorable experience. This is half of a positive feedback loop. The more listings we vet, the more people will book accommodation and give reviews, which in turn allows us to check even more listings.

The second risk is to hosts. I’ve frequently heard hosts expressing their fear that inconsiderate or careless guests will damage their property. I’m proud to say that this has never been a problem for us. We recognized the risk to our hosts , and keeping their best interests i mind, we introduced a protection program for hosts, and are the world’s first company in this industry to do so. For a small fee, hosts can protect themselves against €2,500 of damage. We also organize host gatherings regularly, so our community shares knowledge, and grows itself through the positive experiences shared. This is Christine, one of our hosts, and the latest host to do an interview with us.

This is the second half of the positive feedback loop I described. In this way, the host and guest community grows in tandem, leading to a balanced ecosystem.

So when you travel, don’t stay in the metaphorical equivalent of a glass room, exposed to unknown risks and without a person to turn to. Try staying with a local, be safe, and make a friend in the process.

PS. If you’d like to host visitors in your own home or spare room, write to me at weileen.ng [at] 9flats [dot] com. I’ll attend to you personally.


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Chinese Online Luxury Market, Expected to Hit 16 Billion Yuan in 2011

I’ve always felt Asia has been a region of stark contrasts. One of the biggest, is the wealth gap between rich and poor. Sanlitun, Beijing is one of the best places to witness this. On the way from the subway station, there are beggars and crippled people lying on the street. Then you hit, Sanlitun Village, the Mecca for affluence and luxury goods. Walking around Workers Stadium at night time, ridiculously rich people show off their ultra sports cars like Ferrari’s, Porsches, Lamborghini’s. The point is, there is a layer of Chinese society getting richer and richer, they need somewhere to spend it, and luxury goods are a major beneficiary if the boom.

A recent report from Analysis International, shows that for the second quarter of 2011, the Chinese online luxury goods market reached 3.45 billion yuan and is expected to be 16 billion yuan total for the year. Luxury goods include jewellery, bags, clothes etc.

The study however reveals certain difficulties the online luxury market faces:

  • People are more accustomed to buying luxury goods offline and enjoy the experience of browsing and trying
  • Generally people don’t trust online stores due to the inability to know if you are buying a counterfeit product
  • The range of products is not as comprehensive as real stores
  • Online stores don’t offer a very big price advantage over offline stores

One solution that has been tried by online fashion retailers is to hire a fashion buyer that can offer less well known and less expensive international luxury brands to China. However this strategy has generally failed because people just don’t recognize the brand name.

 

One of the biggest luxury ecommerce stores in China is ihaveu.com.

 

 

 

 

 

 

Related posts:

  1. 163 Made Further Step Into E-Commerce Market, Launched Online Luxury Shop
  2. Tips for Luxury Brands in Chinese e-Commerce Market
  3. Chinese B2C Online Retail Market Share in Q1 2011


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News: GSM Connections On Decline In India

Piramal Healthcare has entered telecom business with 5.5% stake acquisition in Vodafone (for $640mn).

The deal values Vodafone Essar at about $11.6 billion, lower than the $16 billion the company fetched when UK-based Vodafone Plc agreed to purchase Essar Group’s holding earlier this year. The deal took Vodafone’s ownership in the Indian company to 75.35%. [source]

Telecom Growth Story: GSM Connections On Decline

The dip in the number of new lines is noteworthy – India added only 8.58 million GSM users in June as per the latest data released by the industry lobby Cellular Operators Association of India, the lowest in 31 months. In May, GSM service providers added 10.76 million, again the lowest since October 2009. [source]

Karnataka to unveil new policy for gaming, animation

The Association of Bangalore Animation Industry is working on the policy, which will be announced at the 14th edition of Bangalore IT.biz 2011, the annual information, communication and technology of Karnataka to be held between October 18 and 20.

Telecom policy to allow pooling of spectrum

Telecom operators – new as well as established ones – will benefit as a draft of the national telecom policy for 2011 proposes trading, pooling and sharing of spectrum. The policy is also pushing for a one-country-one-licence regime, which means removal of roaming charges.[source]


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We’re not as cool as Hackerspace

That is Co-Working Space’s marketing spiel anyway. Neither are they as trendy as The Pigeonhole or FounderHQ. Rather, Co-Working Space offers a no-frills home office in the East with enough facilities to run your startup and get work done, if you don’t mind travelling to Joo Chiat Place.

At S$200 a month for a seat or S$300 for two seats, the place offers necessities like Wi-Fi, power points, phone lines, whiteboards, printers, and so on. They’ve even thrown in extras like a tripod, spare camera, and microphones, as well as can’t-do-without things like a microwave oven, fridge, whisky and a stove to last you through an all-night Hackathon.

Payment is done on a monthly basis, but you get free goodies like a wireless mouse if you sign up for three months or more. And yes, you can pick either six cans of Red Bull or Nescafe Gold.

So how does Co-Working Space, with its utilitarian name, stack up against the cooler cats it is determined not to be? For one, The Pigeonhole is more of an indie-hip coffee joint; which is not ideal if you’re looking for an environment to yell at your co-founder on a regular basis. But it’s good for holding events like SGE’s Q&A with presidential hopeful Dr Tony Tan.

While Hackerspace (see interview with co-founder) does offer a dedicated desk, setting up shop there is a heftier financial commitment with three months of upfront payment and a minimum of a six-month commitment. Plus, you have to fork out S$512 for a dedicated desk to call your own or S$256 for a shared desk. But for that price, you get to feel cool and own a membership card.

FounderHQ, which is launching on August 14, offers the most attractive price proposition at S$180 per month for early birds. Applications are still open, although they’re selective on who they admit. Affiliated to Founder Institute Singapore, the co-working space also serves as a startup accelerator of sorts with entrepreneurial workshops and activities for participants, and opportunities to interact with investors.

Another option that entrepreneurs can consider is of course SmartSpace, which also offers dedicated work desks. They have a potpourri of membership options — hourly, daily, monthly, quarterly and yearly.

Term memberships are only open at certain periods of the year. Also, if you’ve yet to incorporate a company but are planning to do so, SmartSpace offers to assist you in the process as part of its suite of services.

Last but not least, there’s BASE at muvee, which offers office space at S$500 a month.

In any case, it’s great that Co-Working Space has decided to locate itself in the East, which should attract the unfortunate souls staying in Pasir Ris or Tampines. With FounderHQ manning the West and the rest holding up in Central Singapore,I’m just waiting for someone to set up shop in the oft-neglected North.


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Chillin’ With the Founders of Lunch Actually

Spanning Singapore, Malaysia, Hong Kong and Taiwan, Asia’s first and largest lunch dating agency, Lunch Actually has enabled love to blossom for many couples. Next Monday 15th August, we will be chillin’ with the founders of Lunch Actually, Jamie and Violet. This married couple (with two kids to boot) is a picture of matrimonial happiness. What is even more amazing is that they not only co-founded and run Lunch Actually together, but also Eteract, an online speed dating portal [Disclaimer: Eteract is a portfolio company of Bernard and Gwen.].

Come join us for drinks if you want to hear from Jamie and Violet regarding their entrepreneurial journey as well as more on one that they have taken together as a couple.



Event Details


When: Monday 15th August 2011
Time: 9pm
Where: 29 Boon Tat Street (map)

Drinks will be sponsored by Martell VSOP.

We only have space for about 20 people, so sign up fast.
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Tencent, Baibu and Alibaba Compete in Investing

In May, Tencent invested RMB 84.4 million (US$ 13.1m)  in online travel service eLong and RMB 445 million (US$ 69.1m)  in film production Huayi Brothers.  As for June, Baidu invested RMB 306 million (US$ 47.6m) in another travel services aggregator Qunar. And in July, Alibaba Group led the US$ 50 million funding for group buying service Meituan.

 

Above are just several cases made by those giant internet businesses. These three giants are investing more aggressively than before. Sources say almost all well-known e-commerce companies have received calls from Tencent and Baidu investment divisions.

 

Online shoe store Okbuy has just received RMB 324 million (US$ 50.4m) from Tencent. Okbuy CEO Li Shubin explained that under the current financing environment, getting money from Tencent and the like is as good as from traditional PE (private equity), and even better when factoring into stuff like user resources and payment system. “Okbuy and Tencent are complementary to each other. ” Li said, “We are the ‘mall’ for Tencent community, and Tencent QQ members can buy shoes in our store.”

 

An analyst pointed out that companies in travel, e-commerce and other areas appeal to investors in recent years due to market growth, and there are some bubbles emerging already. “Money is no longer vital. When these companies are looking for partners,  “traffic growth”, “logistics system” and “the influence of the brand” have all became the important factors. And that is the main reason why internet giants like Tencent look more attractive to startups and entrepreneurs now.

 

while Tencent, Baidu and Alibaba are investing aggressively, major portals such as Sina, Netease and Sohu seem indifferently. Some observers say one reason might be they are not aware enough of the changes out there, or they simply lack the cash to invest in.

 

Related posts:

  1. Alibaba, Tencent to Release Smart Phone
  2. Rumor: Tencent Invests $60million in Okbuy.com Series C Financing
  3. Tencent became Second Largest Shareholder of eLong


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Rumor: Now It’s Baidu’s Turn to Acquire Tudou

Rumors has been spreading about Baidu‘s potential acquisition of Tudou, the online video service which has gone a long and tough trip towards its IPO.

Tudou was said to halt its IPO in the wake of Baidu’s proposal. Actually, Tudou filed for IPO last November even before Youku did so. Now with Youku get listed on Nasdaq, Tudou is still wandering outside the door of capital market. Once a while, we heard that the company was filing again. But nothing really happens.

According to people familiar with the matter, Baidu proposed two approaches to intrigue Tudou, the first one is Baidu acquires Tudou but the latter will continue its operation independently. Qiyi which also belongs to Baidu will focus on copyrighted quality content while Tudou will be more of a UGC platform, something Tudou is really good at.  The second proposal is to acquire Tudou via Qiyi in an aim to consolidate the two to compete against Youku.

The cash-flow can only sustains Tudou for like another two quarters, according to some industry observers.

Except for Baidu, Youku CEO Gu Yongqiang also said they didn’t rule out the opportunity of acquiring Tudou as well. We wrote about this few months ago when rumor saying Youku is planning an acquisition for an Youku-Tudou pair up.

Related posts:

  1. Youku Extends Financial Lead Over Tudou
  2. Youku acquiring Tudou rumor signals cost and copyright problems in online video market
  3. 30%-50% Traffic To Existing Chinese Video Sites Is From Baidu, CEO of Baidu's Qiyi Said.


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3rd September, Innovation Works Partners With TechNode to Welcome Startups to Jump-Start Program

We are very excited and honored to announce that at 3rd September, TechNode will partner with Innovation Works (IW) to co-host its monthly event (TNT Beijing) at IW’s office. Innovation Works’ Jump-Start program is also opened for applications. Any early stage startups if you are interested in the program (details) and wants to pitch IW investment team face-to-face, please mark your time as you can now apply for 10min presentation here online.

Besides the startup demo sessions, two panels with founders from some shining startups are also arranged with topics focusing on Online-2-Offline business model.

[Date/Time] – 1:30pm – 5:30pm, Sunday, 3rd September 2011

[Place] – Innovation Works office (Address: Disanji Tower Block B, 18/F, 66 North 4th Ring Road West, Haidian District, Beijing, 100080)

[Event Official Site] – http://event.technode.com/tnt/o2o/

[Registration] – for Audience, please register here; for Startups who apply for demo, please register here.

[Agenda]

1:30-1:55pm Registration Open

1:55-2:00pm Opening Speech

2:00-2:45pm Panel I: Online-2-Offline (O2O) model, the reformation of e-commerce

2:45-3:30pm Panel II: O2O model, new opportunity for startups

3:35-3:50pm Presentation by Innovation Works

3:50-4:20pm Startup Demo Session I

4:20-5:10pm Startup Demo Session II

5:10-5:30pm Open Q&A

[Speakers] (more to be announced)

Buding.cn – CEO XU Lei(confirmed)
Hotel Finder – Founder Liu Zhangbo(Confirmed)
Meishidaren – Founder Shen Haikui(Confirmed)
Innovation Works Investment Manager – Cao Fei(Confirmed)

Innovation Works team also released a nice video clip to encourage young entrepreneurs to join its Jump-Start program.

Related posts:

  1. Is There Anyone Who Wants to Copy Innovation Works?
  2. Lei Jun Vs. Kaifu Lee, Angel Investor Vs. Innovation Works
  3. Innovation Works Wang Hua: From Imitation to Innovation


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Five Startups Presented at TechNode TNT (Beijing) Demo Time

Five startups presented at our monthly event TechNode Touch (TNT) Beijing last Sunday at the Garage Cafe: VGO, ShengDianBao, Ayotime, Papaya Mobile and Guohead.

VGO – an innovative Weibo app. As Weibo becomes a very popular social service, it also becomes common people are asking each other’s weibo account when they meet. VGO makes it very easy. Both of you just turn on VGO and shake your iPhones, then you two will auto follow each other so no need spending time on searching or typing the other’s weibo account. VGO also added a location-based social networking feature, you share your iPhone, it will give you a list of weibo users who are close to you.

Shengdianbao (SDB) – an Android app to help saving battery life. For Android users, most of them are not happy with its battery life. SDB analyzes and monitors the apps running on your Android phone and can auto turn off those tricky apps who are eating your battery power. The founder of SDB said 30%-50% battery life can be saved with SDB installed.

Ayotime – a service which can help users to ‘trade’ their Free time. The site is not fully finished yet. According to its founder, Guan Feng, every user can post his/her Free time slot and set a price for it. If you want to send someone to buy a gift for your girlfriend who is in another city, you can just try Ayotime to find who live in that city and how much he charges for hours. Guan said the mobile app is also under development.

You may read more details about Papaya and Guohead in our previous interviews and coverage. Both companies also joined the panel discussion about the business value of SDK, together with UMeng and Mobcent.

Related posts:

  1. 7 start-ups presented at Shanghai Demo Day
  2. Shanghai Techyizu Announced its Startups Demo Day, June 18–19
  3. New Domain, New Logo, Sina Weibo Goes 'Independent' Tomorrow


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iXiGO Raises $18.5 M investment from SAIF Partners & MakeMyTrip

iXiGO.com, the travel search engine, has announced an equity infusion from SAIF Partners, a leading Asian private equity & venture capital fund, and MakeMyTrip Limited, India’s leading online travel company, for a total cash consideration of $18.5 million across investment into the company and purchase of shares from existing shareholders. Immediately post this transaction, SAIF Partners and MakeMyTrip Limited would own 56.7% and 19.9% respectively of the company, Le Travenues Technology Private Limited (Ixigo’s parent company).

iXigo will use this funding to expand internationally. The company earlier acquired Tripmela and launched iPhone app for the international audience.

76.6% owned by external investors? What’s your take on iXiGo’s raising money from MMT (a potential acquirer?).

Recommended Read: iXiGo Story


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July 2011 Japan IT Links (Part 3)

Continued from (Part 2). Last part of July news which we did not write as a dedicated article.

Referred pages are all in Japanese, unless otherwise stated.

Twitter as a fool detector

"Twitter, a fool detector" is a recent buzzword in Japan. It came from net-savvy's dry humor by observing "normal" people tweeted socially unacceptable things and got bashed. But that also means how Twitter is widely used by non-techy.

Pixiv Troubled

Pixiv was rumored to be developing international version, but is having troubles with current users.

Other news

If you want to know any specific news more, but unable to find them in other English blog/media, please let us know.



July 2011 Japan IT Links (Part 3)


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File Extension Underwear

"Kakuchoushi Pantsu"(file extension underwear) with "zip", "exe", "php" and "log" underwear for men from Okinawan company Monolith Store [J]. 1575 yen(US$21).

Women's underpants are said to be coming soon as well.

via Slashdot Japan [J]



File Extension Underwear


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Savaari Brings Car Rental Services Online-Can This Be The redBus Of Cab Business?

Pluggd.in has been profiling car rental services for the last few weeks and while some of these (services) are regional in nature, Savaari brings pan-India coverage for car rental services. Apart from regular car rental benefits of information aggregation, Savaari brings in a few differentiators:

a. Payment: while booking, you only pay 10% to the site and rest when the cab arrives.

b. Car Packages: The company has travel packages for inter-city travels to some of the regular travel destinations (like Jaisalmer/Dharamshala etc).

c. Branding: The team has focused on creating a brand focused user experience – especially at different touch points (like branded duty slips/placards etc).

While websites of all car rental services do not give a direct peek into their quality of service, we bring you a detailed QnA with Savaari team (Gaurav Aggarwal):

india-cabs-logo

QN: What’s the team background/prior experience before starting Savaari? What’s the current team size?

My family has been in the transport business for two generations. Based on their experience, I have learnt that there are no quick ways to evolve this business and you have to get the operations right to succeed. The key to get that right is that you satisfy one customer, learn from it before you get on to the second customer.

It was in 2006 when I was travelling from Mumbai to Delhi and had to go to Roorkee. But after reaching Delhi, I found no reliable option to book a car. This is when I realized the need of a reliable car rental that is available 24×7 where the customer is assured of a clean, fully functioning car and an informed courteous driver. I decided to analyze the scope of the future of car rental in India and soon I found that not only there is no standard and quality assurance in this sector but also that there are no national players. There are franchises of some western companies present but they are serving only to a niche segment.

I have a Masters in Computer Science from Georgia Tech and have worked for 10 years in a networking company in the Bay area. I was involved in router development. The experience of working in such a complex environment helped me in designing a completely customized and scalable backend for Savaari from scratch. I have been managing technology, marketing and business development in Savaari.

Soon after we started, Mohit Khanna came on board. He brought with him an entrepreneurial experience of a decade of running a company that printed bar codes for Brass Export. He heads operations in Savaari and has been responsible in growing our network to 53 cities while ensuring quality standards for each booking. Manik Shah joined us a year later. He brings with him sales and customer support experience having worked in travel and BPO industry in various executive roles. He heads customer support at Savaari and also manages all our corporate accounts.

There are currently 17 employees managing operations, customer support, sales and IT including senior management team of 3. We also have 2 advisors helping us with brand and business development and 3 consultants in the team for marketing and accounting.

QN: How are you funding Savaari?

We are entirely bootstrapped. We had put in money initially which was used to put up a website, get the backend in place to get started. Given how unorganized the market is from the beginning our focus was to: develop a service model to deliver quality car rentals across India, build a business model where we keep our prices nominal and a financial model so that we can make money while doing so. We have been cash flow positive since our second year.  This has helped us stay our course to get ready for our growth phase.

With an experience of over 30,000 car days, we have proof of concept, right team, processes (including driver training), scalable backend, marketing and strategic vision in place to build a brand for quality car rentals across India at nominal rates. We will be doing so by consolidating a large part of this highly unorganized industry.

QN: You are also selling packages (and in general targeting MICE category) – what’s the current sales distribution?

We are catering to both the business and leisure segment of market. The business segment includes MICE companies. We also have hundreds of well thought out packages to choose from which cater to the leisure market. Currently, our revenue is distributed equally between business and leisure. We will continue catering to both but going forward will lay more emphasis on the business customers. This is because the business segment is around 72% of the market. Thus, going forward we expect our revenues to come more from business customers.

QN: What’s your target segment? for e.g.: is it intercity/intra? Retail vs. Corporates?

The market is divided into airport (and also point to point) and non-airport (local full day/outstation). While airport is around 14%, it is the remaining 86% that is our target market. Though broadly the requirements for service standards are same for retail and corporate (part of non-airport segment), there are nuances like corporates requiring credit, and mostly using cars for intra city travel which makes these two segments different. Thus we have different strategies for catering to retail and corporate customers. We will continue focusing on the non-airport market which is a combination of both inter/intra city and retail/corporate. So far, 40% of our revenues are coming from retail customers and the remaining 60% are from corporate customers including our travel partners.

QN: Most of the car rental sites are ‘regional’ in nature, owing to operational overhead of this business. What’s your ambition/way forward?

Savaari will be India’s car rental company that brings national standards, regional overhead business model and local customer centered operations.  This is the perfect blend to be the sustained leader in car rental in India. Based on the transport experience that my family has, we knew to successfully run this business there is a lot of local help and context that is needed. This is the reason, we decided to use these local transporters as building blocks and build processes in place around them so that we can deliver quality services across India. This way we not only had the regional experience, but also same standards across India.

However, this was just the first half in building a pan India car rental company. The other part was to build a model so that right from the point the customer gets in touch with us to the point they get bill from us, they interact with Savaari and its standards and in case there is any issue, it is Savaari that takes the responsibility. Even now in all our bookings, the customer sees Savaari placard, Savaari chauffeur card, Savaari duty slip and Savaari branded newspaper and water bottles.

To the end customer we are a pan India car rental company and at the backend to provide services, we have decided to aggregate local players. Going forward, we plan to increase our number of cities and the number of local transporters in our existing cities and complete Savaari branding in terms of drivers’ uniform and the cars’ exteriors on a pan India basis. We also plan to build a GPS integrated device to better manage our services, automate corporate billing entirely and provide value added services to customers.

As a business, aren’t you competing with a phone call (to car operators’ number)? What’s your USP?

Yes, on one hand we are competing with them.  But on the other, this internal competition keeps us on our toes and strives to be the leader in this industry.  Over the years we have been able to turn a potentially competitive situation into a win-win partnership. The local operators understand the value of associating with Savaari as they see the top line sales potential, where Savaari helps them maximize sales locally and also from areas outside their area of influence.

Savaari is bringing in world class service standards with 24×7 availability, pan India presence, quality car rentals and nominal pricing. I am assured that continual investment in technology and talent will keep us at the front of the pack and guarantee long term success.

DO give Savaari a savaari and share your opinion.


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