Covid-19 has kept people in their homes for longer than ever before — but what if you need a change of scenery? Short-term rental service Globe might be the answer.
Globe rebranded from Recharge, which was a start-up that rented out unused hotel rooms by the hour. With the rebrand in mid-2019, the company pivoted to a marketplace that offers short stays of a few hours in people’s homes. While Recharge had raised $10 million from investors, according to Techcrunch, Globe is starting over with a new cap table and was accepted into the Y Combinator program last year.
Providing Much-Needed Breaks in a New World
The idea of renting homes for increments of time may seem wild before Covid-19, now with people sheltering in place looking for breather space, this proposition is gaining traction. Globe’s short-term rentals are perfect for anyone needing a change of scenery — the app provides Airbnb-style rentals by the hour.
It isn’t difficult to imagine the target demographic for this service — parents who need a break from being with their children 24/7, artists and musicians who don’t can’t work in their apartment, or couples who can’t bear to listen to another of their significant other’s work calls. Anyone who needs a break from their day-to-day is a potential customer.
“At a time when people are hanging on to the fringe of their sanity because we are not meant to be cooped up like this, we give people a reprieve,” Globe cofounder Emmanual Bamfo tells The New York Times.
Covid-19 Provided Globe a Massive Opportunity
According to the company, it has struggled to keep up with the massive demand generated by consumers looking for a break.
Currently, Globe’s biggest issue is the supply of spaces to rent — the company has 5,500 hosts and a total of 10,000 guests who can book listings. However, the company also says that they have a waitlist of over 100,000 guests who want to join the platform. Hosts in the company’s current markets typically charge around $50 per hour, after cleaning costs for a rental. Globe keeps 20%.
Filling this demand could be difficult, as some people are not comfortable with strangers coming into their properties during a pandemic. The company is still grappling with how to effectively scale. Globe could provide the opportunity some Airbnb hosts are looking for in this pandemic.
Globe is an Alternative Income Source for Airbnb Hosts
Travel has plummeted as lockdowns and stay-at-home orders were put in place across the world, impacting Airbnb hosts. Globe’s model could make up for lost revenue for these hosts.
Globe isn’t catering to travelers. The company’s extremely short term rentals are focused on providing service to a hyper-localized area and aren’t impacted by travel restrictions.
Globe currently rents properties in New York, San Francisco, Miami, and London.