How does letgo make money?

How does letgo make money?

Introduction:

Letgo came into existence in 2015. The motive behind Letgo coming to existence is because of buying and selling used products by having a chat with the buyer or seller locally. Here, we’ll know How does letgo make money?

For the user convenience & benefits, letgo came to the user’s hand in the form of a website or apps. Millions of users are constantly in the use of letgo. The user rate of letgo is constantly increasing year to year. The growth of letgo was very unpredictable for its competitors. Letgo hadn’t completed a decade in the industry, but it still holds one of the top positions in its market field.

Answer:

Listing of letgo covers the various aspects of the daily use products like electronics, cars, clothes, furniture, etc. Using the capability of a letgo platform like a website or app is such an easy thing that it is just like clicking a picture of the products.

Letgo platforms are built up with such a technology that letgo itself titles & categorizes the product by using artificial intelligence tech. Letgo also helps users with the functionality like easy to browse products or local things, view others profiles to get to know the profile, rating & reviews stated by the already experienced people with that user. And one user can chat with the other user within the letgo platform for the safety convenience of the user.

Letgo oto+ is a new service provided to users so that they can easily buy or sell second-hand cars. It develops the trust for the buyer or seller to list it on the letgo platform. It assures buyers or sellers of a trouble-less process by developing trust, convenience & peace of mind.

Letgo collaborations with other companies

  • January 2015 was the actual month & year when letgo came into existence in front of the world. Letgo was launched by Alec Oxenford, who was also the former CEO of OLX. The app was initially built with the motive of targeting the US market to compete with eBay & Craigslist.
  • eBay & Craigslist, both companies are online marketplace leaders from the year 1990.
  • As Letgo company took a gradual growth during 2015. In May 2016, Letgo merged with Wallapop so that they both can achieve success together, Wallapop is also a mobile-based startup. Letgo remained the major owner of the company after the merger with Wallapop, so let go name stayed as a company name.
  • During this time, around 10 million were the monthly active users between both the companies Letgo & Wallapop.
  • In 2017, the report concluded that Letgo was the second-fastest-growing company in the US.
  • After 3 years of the Letgo app being launched that is in 2018, the app had near to 75 million downloads & had 200 million listings of second-hand products from both the way buyer & sellers. And the chat system had a conclusion of 3 billion messages overall.
  • The company had stated that in august 2018 letgo app had 100 million downloads. And also product listing counts reached 400 million.
  • In March 2020, Nick Huzar, CEO of OfferUp announced & stated that OfferUp & Letgo would be merging. And these shocked most of the letgo users because there was neither a notice & nor news related to these announcements. This also disappointed them. And the letgo was also being removed from the app downloading platform.
  • The CEO of OfferUp stated that merging both the leading companies into one was a great decision for both the company because it strengthened with much more listing, more resources, more comfort for all the users of OfferUp & Letgo.
  • But this sudden decision of both the companies created a problem for most of the people who had already had a talk with the seller about the confirmation of buying that particular product, most of the data of users vanished as the letgo app or website disappeared, etc.
  • There were also situations where the give and take of the product between the buyer & seller was done. But the transaction was still pending. And at the same time letgo platform also stopped working, this created a worry for people who were stuck like this.
  • Both the companies noticed these issues and created one platform so that the remaining people’s issues get solved quickly. And the time duration was given to solve the irregular issues.
  • And then people were happy with getting a chance to solve the issues which they were facing.

Competitors of Letgo:

Lists of Letgo company competitors include:

  • The Rubicon Group.

The number of employees in Rubicon Group: 1828.

Revenue: $464 million.

  • Zeel.com.

The number of employees in Zeel.com: 478.

Revenue: $69.3 million.

  • Rocketrip.

The number of employees in Rocketrip: 84.

Revenue: $12 million.

  • Handy.

The number of employees in Handy: 916.

Revenue: $132 million.

  • Giphy.

The number of employees in Giphy: 200.

Revenue: $29 million.

  • Qubit.

The number of employees in Qubit: 149.

Revenue: $21 million.

  • Wynd It.

The number of employees in Wynd It: 9.

Revenue: $1.2 million.

  • Brickwork.

The number of an employee in Brickwork.

Revenue: $3.7 million.

  • League Apps.

The number of employees in League Apps: 1828.

Revenue: $464 million.

  • Paperless Post.

The number of employees in Rubicon Group: 133.

Revenue: $19.2 million.

Letgo’s app & website working strategy:

Letgo platform is useful to buy or sell second-hand products. It is not wrong if we say that Letgo has more similarities with OLX. Letgo app is available in more than 35 countries around the world. Letgo has more than 20 million users all over the world. Letgo has evolved with two advanced features like Letgo featured listings & Letgo pro.

Letgo uses some of the strategies to give users a quality experience through adapting technologies like geolocation, artificial intelligence & image recognition.

  • Geolocation:

Geolocation helps to get to know the location details of the user let it be of a buyer or seller. This also helps to know that the seller or buyer is near to us or not. Will it be travelable if the user wants to buy a product from the other user?

  • Artificial Intelligence:

Artificial Intelligence is used to mimic human actions in a machinery way. Machines are given the ability to think like humans. So that they can do the work of humans.

  • Image recognition:

The image recognition function helps to recognize the details of an image like what the image depicts, object reflection from an image, etc. These functions help to guess the image & title it. This function also helps to categorize the image where it has to be placed in the system.

The listing of the products for the buyer will be done based on the user’s location & preferences. Advertisements that are listed for the user are usually under the 50 miles circumference of the user. This helps them to get the nearest products for them. Filter facility is provided for the user which includes distance, location, newness, category, price, etc. These filters give a user a friendly experience to use the platform.

Letgo’s money-making source:

  1. Online marketing is one of the biggest inventions that made big changes in the real world & also in people’s lives. Before online marketing, marketing was done in the manner of going outside the home, asking everyone to buy the product, requesting people to give a minute, explaining to people about the benefits of the product, etc. This all struggle is being completely vanished, this was only possible only because of online marketing through online platforms.
  1. Everyone can buy anything from anywhere, let it be food, clothes, household needs, furniture, etc. There is no need to bargain with the market seller. There is no need to find the location to buy a product. Each & everything will be available at your door, users only have to order through the online platform with the help of their phone.

Online platforms are also being divided into two parts that

  • Amazon, Flipkart, Alibaba, Snap deal & Myntra all platforms help users to buy newly manufactured things. Fresh & accurate products are being delivered through these platforms. These all platforms have a worldwide reach, customers for this online platform are available in every location in the world. These platform products have been reached from company to customer.
  • Letgo, OLX, eBay, OfferUp, etc. These all platform products are sourced from the customer & reached the customer. One user sells their second-hand products to the other user by making a profile on these platforms. Users advertise their products on these platforms to get customers for their products.
  • Letgo offers a user-friendly atmosphere to its customers through the app or website. One of the biggest advantages of using letgo is that users can advertise their products without paying money. This strategy attracts customers to buy or sell second-hand products.

Now, the question is then how does letgo earn its revenue? There are 3 strategies of letgo to earn revenue.

  1. Ad Based Model:

Online platforms always benefit advertisers in various ways so this helped letgo to earn revenue.

Letgo app or website users will see a lot of advertisement banners on the platforms. And if the user got interested in the products which have been advertised on letgo. Then this helps letgo to earn revenue. So, it is beneficial for both users & companies. Ad based model gave great success to the letgo in the aspects of revenue.

  1. Freemium model:

Making products appear at the top while search result listing is a very important thing for the seller, so the freemium model helps sellers to make their products visible at the top for the buyer.

Letgo charges product owners a fee ranging from $0.99 to $3.99. The actual charges for the seller depend on the product. If the seller or user took these models by paying a charge then his/her product will be visible at the top for 7 days. This is very beneficial for the seller so they also got attracted to these. Letgo is also earning revenue through these.

  1. Two subscription plans:
  • The Super boost mode: Subscribers of Super boost mode will get the chance of featuring their products in the featured list. Your product will be kept in order in the featured list so that it will be visible to most of the buyers in the top lists.
  • The Letgo Pro Plan: This plan is mainly for car dealers. Because they can get the leads in the search result listing. The payable amount for these subscriptions is planned like $99 for 30 vehicles, $399 for 70 vehicles & $599 for 150 vehicles. This amount is based every month. This plan even benefits with a 30-day free trial.

So, these all strategies of letgo make them earn their revenue. Also provides comfort to their seller audiences.

Conclusion:

Letgo is a game-changer in its industry type because just within a countable year, it took a high jump in the industry. In this manner, letgo saw a $1.5billion revenue just within its first three years. This amount is still a dream for most start-up companies.

So, the beginning year’s revenue of letgo just made every industrial company look forward to it. And these increased the competition for letgo just within its beginning years. Letgo also provided various lessons for the other start-up companies. Made them learn the strategy for revenue-generating ways. This was also the reason for the OfferUp company to look forward to it & connect to it. So, they can become one & come up with stronger ones to make customers more beneficial.

Frequently Asked Questions

1. Who are Letgo’s biggest competitors?

Answer: As Letgo is one of the established companies in the marketplace. It has to compete so that it can attain a number one place in its industry type. Companies that are competitive to letgo are Carousell, Gumtree, Hoobly, Kijiji, etc.

2. What is Letgo’s industry type?

Answer: As Letgo gives a service to a user like they have the permission of selling or buying a product through the letgo platform. Users can sell or buy second-hand products through letgo. And these platforms mainly work for the people’s service through publishing the user products. So, Letgo comes under the publishing, media & internet industry. Same as one of the worldwide famous OLX.

3. How many employees work in Letgo?

Answer: Letgo is a startup company that was founded in the year 2015. Within a few years, it grew to a great height in the industry. It is because of the company’s working style. And also because of working employees of Letgo. Letgo has 265 employees in its company who strive hard for their company. And help build these companies to reach success.

How does letgo make money?

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