Hipmunk Surfacing New $6 Million Round
techcrunch.com
techcrunch.com
It astounds me how lazy these companies appear to be (from the outside of course). A new hot startup launches, and they don't even lift a finger as a counter measure. Even when the upstart has proven that there is more to be desired out of a typical airline search site.
if you were Kayak, and you already had a backend in place, wouldn't you assign at least one designer/developer to play around with novel UIs?
What's to say the current players haven't already tried those UI changes and found them less usable by the general population?I don't know for sure, but I do know that calling the current competitors lazy is the completely wrong view (and factually incorrect). First, they deal with an older, less "techie" audience, which means different UIs are immediately viewed as confusing rather than cool. Second, they have the traffic to run A/B tests on everything, which allows them to know what such changes will do to their bottom line without having to publicly deploy or announce them.
Full disclosure: I worked on TripAdvisor Flights and was in the same YC batch as Hipmunk, though there was no overlap between the two and I actively avoided mixing the two circles, so I don't actually know anything about how Hipmunk views TA and vice-versa.
Probably because they don't think it's an improvement and they think it will go out of business on its own if they ignore it. This is what happens to most 'hot' startups anyway, and if Hipmunk is able to beat the odds then I doubt it will be because of their current UI.That's not to knock Hipmunk at all, I just think you need to lengthen your arc a little on this.
Occasionally, the startup is right, and consumers care more about the innovations that they introduce than the features that conflict with them. In that case, the startup displaces the big company and doesn't remain a startup for long. But more often, as the startup grows, they run into the same issues that led the big company to reject the innovation in the first place. At that point, they hit a brick wall in their growth, and they either have to become lame like the big company or forego the users that need those conflicting features.
I read about this page one of the first times Hipmunk was discussed here, but I don't know who had it first.
I hope they gain the technological or businesses assets to make them worth tens of millions, it seems like that is what would guarantee such a large raise.
$7mil in this market for seasoned entrepenuers with a product making over 100k a month (their numbers via recent interviews)... not a bad business to invest in.
Let's see how they scale.
Two great services :)
"we don't support trips to the past yet"
humor is always nice :)
I do wonder, however, how long they'll be able to continue to link directly to the airlines. I'm assuming (and this may be an overly broad generalization) that as they build out features for users this will naturally force them to create interstitial's between the carrier's website and their own. I seem to recall that Kayak was very similar in terms of its relationship with carriers when they initially started. But as they built out more functionality they created more for the user to do on their site distracting them away from the carrier site.
So although TechCrunch thinks it interesting that American isn't cutting out Hipmunk is this really going to be true in the long run?
One recent example I was travelling from Detroit to LAX with my 94 year old father and I wanted a direct flight. HipMunk showed nothing but Delta.com showed four daily flights. Sure they were more expensive but I gladly paid the premium because my dad is too old to be running between gates.
No amount of sorting showed those flights on HipMunk. Maybe if they have the money they can build a preference layer.
frankly i still find sidestep.com to be a better interface with more granular controls over what you're looking for.
I also don't get their business model. Last time i checked plane ticket affiliate payouts are abysmally low; south of $10 per ticket.
Hipmunk removes that stress for me -- seriously awesome.
I've never had similar problems with flights with at least one end in the US though.
Brilliant work guys :) You have succeeded in your effort to make finding an agony-free flight easy.
Does $6m just not go that far, or is it supposed to last for a long time?