(TravelDaily)At the end of 2012 a startup called Airbnb successfully completed a round of financing worth $200 million even though it failed to attract any venture capital investment at the initial stage. This was because the number of listings on Airbnb has already increased from 120 thousand to 300 thousand in just one year and the website’s users had tripled to 4 million.
Similarly, in 2012 a startup called Beijing Run Technology Co Ltd officially launched by using a Chinese brand Xiaozhu.com (Little pig in English). Xiaozhu.com used the C2C (Copy to China) tactic to replicate Airbnb’s model in China. At the time many people were doubtful that Xiaozhu.com would survive, but by now their online transactions have already surpassed 100 million RMB.
Like Airbnb, Xiaozhu.com also has a unique and effective algorithm to make the best recommendations for accommodations to the users. Relying on authentic user reviews and other factors, Xiaozhu.com makes the homes with good quality and authentic pictures easier to be found by users.
Chi Chen, CEO of Xiaozhu believes the “high entry hurdle” they have set for hosts on the platform is a pre-condition for users getting the best quality experience and is what the website depends on for its existence.(Translated by David)
