Hemnet’s announcement of staff cuts and new free listings came on Tuesday morning. In an interview with EFN, CEO Jonas Gustafsson says the changes will strengthen the platform’s network effects following criticism from, among others, estate agents.
– There has been criticism of Hemnet’s price point. We are now launching two free options to ensure that Hemnet remains relevant for all different types of home sales, including those that get off to a slightly slower start at an early stage. This is a way of further lowering the threshold for listing on Hemnet. That we are then adjusting the compensation model is a natural step, Gustafsson tells the newspaper.
At the same time, he rejects the notion that Hemnet is copying its competitor Booli.
– I would not say that we are adopting Booli’s model. Booli does not charge for its listings and is state-funded, so the terms are completely different. However, with Booli at the forefront, an industry practice has developed among property portals of compiling the entire supply. This has created new expectations among homebuyers, making it absolutely central to bring all homes together on the platform.
According to Gustafsson, the changes are rather about adapting to the reality that exists today.
Hemnet’s share is rising just over 3 percent at 11:25.
