Leboncoin is the leading online marketplace in France. With an astonishing 7 billion page views per month, Leboncoin is the 5th most visited website in France. No fewer than 800 000 new listings are posted each day on Leboncoin. Out of its 27 million listings, it has jobs, cars, real estate, and goods in many categories.
Currently, Leboncoin’s valuation is estimated at 3 to 4 billion euros (see full article).
In this article, we will focus on real estate.
What is Leboncoin’s competitive environment?
Leboncoin and Airbnb: the fight for the short-term rental market
Indeed, Leboncoin is a very serious competitor of Airbnb. More than 2 million people per month visit its short-term rental listings. When I last wrote about it, LeBonCoin didn’t offer the possibility to book a flat and pay online. However now they do! What’s more, a new filter has appear: “Listings with online payments only” (Annonces Paiement en ligne uniquement”).
Leboncoin, flatsharing and the mid-term rental market
Have you ever heard of Spotahome, Uniplaces, or Badi? If you haven’t, those are websites that have raised tens of millions of euros. In Spain, the leading real estate websites Idealista and Fotocasa are seeing huge competition from Spotahome and its competitors. Europe’s rental property market is worth an estimated $500 billion annually. Therefore, Leboncoin may want to develop the possibility to book a room, and pay online also for this sector, instead of letting these new websites gain market shares in France too.
Leboncoin and Facebook Marketplace
Facebook is betting big on Facebook Marketplace, to strengthen its brand. Indeed, as the social network is challenged by other actors, and while new generations are said to show less interest in Facebook, the social media needs to increase its user loyalty. To do so, it is becoming a leading marketplace for many sectors, including real estate. Already, it is said to perform extremely well in terms of number of contacts it generates for the advertisers posting real estate listings on Facebook.
Leboncoin and SeLoger
Another strong competitor of Leboncoin for real estate is SeLoger, and Axel Springer. While Leboncoin has acquired Avendrealouer, SeLoger has acquired Logic Immo. This consolidation has reunited the four biggest real estate websites in France, under two actors. Quite interestingly, Leboncoin has used the technology of Avendrealouer for its new home sections. Indeed, New Homes is a crucial sector with high-spending advertisors. Hence, it is only logical for Seloger to create a strong product, and position itself as a leader on this market.
What companies should Leboncoin acquire?
There are two types of acquisitions to consider:
- Buy online marketplaces, specialized and leader in their sector (real estate, jobs, cars, fashion, etc.)
- Buy services companies, to strengthen the platform Leboncoin by bringing more services on it. Payment, delivery, comparison websites for mortgages etc.
Buying online marketplaces
Indeed, Leboncoin has bought AgriAffaires (agricultural material listings), MachineryZone, A Vendre A Louer (real estate), and recently VideDressing (fashion). This shows that Leboncoin’s M&A activity includes the acquisition of specialized actors.
Buying companies to bring more services to its users, and advertisers
However Leboncoin may acquire service companies such as comparison websites for utilities (gaz, electricity), or comparison websites for mortgages. The objective is not to drive the focus away from listings. But to strengthen the platform, and bring more services on it.
Airbnb has bought Luckey Homes, a property management company (cleaning, booking, hosting the guest etc.). We can imagine that Leboncoin could make a similar purchase. Those kinds of fully integrated experiences increase the user-stickiness, as well as the loyalty of advertisers to the brand.
This is what Zoopla Property Group has done in the United Kingdom. And Zoopla was recently acquired for 3 billion dollars by Silver Lake (US private equity firm). Leboncoin’s potential is much higher, because Zoopla is only the #2 real estate website in the UK, while Leboncoin is the #1 on real estate, cars, and jobs, and the #1 marketplace for goods and services in general.
Thanks for reading this. Have a look at the article talking about Leboncoin’s revenues, EBITDA margin, and estimated valuation before IPO (click here).
