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I get the feeling a company like this would only make this kind of leap because they have the data to show it will pay off. I.e. they can formulate algorithms t
by leothelocust 8y ago
I get the feeling a company like this would only make this kind of leap because they have the data to show it will pay off. I.e. they can formulate algorithms to make the best purchases and the most profit. I foresee big gains from this
- yodon 8y agoIt’s rarely a good idea to compete against your customers
- smt88 8y agoZillow has captured the user base so effectively that the customers will have no choice but to continue paying. See also: Amazon
- AznHisoka 8y agoWhy? BlackRock offers solutions to other asset management firms to make investment decisions. They use the same solution in their asset management division.
- caminante 8y agoIsn't there a firewall between the units?
- superquest 8y agoIn this case it seems the customers are unlikely to revolt. Most won't even notice, right?
- paxys 8y agoEvery big company does this in some way. The only smart move in business is to be where the money is.
- caminante 8y agoGreat point. For now, it is limited to AZ and NV and for wholesale purchases only. But it seems like a conflict of interest that's hard to prove isn't being abused.
- malloci 8y agoIsn't Amazon's marketplace similar in that regard? They compete with other sellers using Amazon's platform all the time. Ethically, it seems a bit fuzzy for me given that one of Zillow's big features is there zEstimate. How can they demonstrably prove they aren't tweaking that somehow for their own gain?
- jacobkranz 8y agoI'd argue that Amazon's customers are the buyers of the products, not the sellers using Amazon's platform.
- bunderbunder 8y agoI'd argue that Amazon has many different groups of customers.
- notyourwork 8y agoThis was my thinking as well, they can decide what they want to buy based on their data on prior listings and closing prices. It is an interesting advantage.
- maxerickson 8y agoA testable prediction at least. I wouldn't be surprised if they make a bunch of money and then make a big mistake and lose a much bigger bunch of money.
- kelukelugames 8y agoBut how is this scalable? You need manual labor. This is a bigger headache than hiring agents as full time employees like Redfin.