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Rising tides float all boats’ someone once said, a quote that I agree with. Especially where the expansion of the self-employed, empowered estate agent is concerned. The more players the better.
I’ve spent my career promoting the idea of improving estate agency, from founding Hatched in 2006 to becoming part of the global eXp movement in 2019, I’ve been consistently focussed on innovating the property sector.
First there was ‘online estate agency’ which developed the idea of great agents in the field being supported by a compelling tech platform. That has now evolved, as have the fees, to a UK self-employed sector that can now count around 2000 agents, around half of whom are in partnership with eXp.
Back in 2014 though, the online agency space was taken by surprise with the launch of Purplebricks, a well funded, bold and ambitious business run by Michael and Kenny Bruce and which was not without its controversy.
In the following years Purplebricks expanded to Australia, LA, Germany and beyond and took its excited shareholders with it on a journey that seemed unstoppable. Until it wasn’t.
Puff, bluster, naked ambition and PR eventually gave way to a hemorrhaging of shareholder value, a Bruce Brothers exit and various subsequent CEOs all of whom struggled to make the ‘Commissery’ agent succeed in profitability terms.
£150m in marketing spend later, the company was de-listed from the stock exchange after being battered to within an inch of its life to then be rescued by Charles Dunstone’s Strike. But Charles himself is now about £50m worse off since taking it on.
In an announcement recently that surprised most of us, the prodigal sons of Michael and Kenny [Bruce] have now re-joined Purplebricks as seemingly the rescuer’s rescuers. Except there’s surely a further twist here.
You will remember that Kenny Bruce backs TAUK, the self-employed model that he and Michael’s cousin, Mark, co-founded. All very cosy.
So what happens to TAUK now in the shadow of the once great Purple-wonder being resurrected under the supervision of Michael and Kenny, at least one of whom is a major shareholder in TAUK? And what does fellow investor Harry Hill think about this potential conflict?
I’ll take bets that this is how things turn out…
Purplebricks quickly absorbs TAUK in its rejuvenated hurry to grab market share and traction and to show potential investors that it has momentum. Again.
Then expect an eventual PB re-float on the London Stock Exchange so that Messrs Bruce get rich again. After all, why else would they get involved?
In the process, the upshot is that existing TAUK agents can now look forward to becoming Purplebricks ‘Local Property Experts’ and with the 20 hour days, corporate targets and pressure that all of their forebears had to contend with.
Oh, and don’t forget those ‘5* reviews’. Lots of them – or you’ll be in trouble 😉
Yes, rising tides float all boats. But some boats sink too.
Adam Day is European expansion leader at eXp.
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