Kristjan Byfield, co-founder of end-of-tenancy platform The Depositary, has issued a stark critique of some proptech startups that label themselves as “disruptors”.
In an interview with AssistInventories, Byfield highlighted what he sees as the pitfalls many of these companies face due to their limited understanding of the complexities involved in property transactions.
Byfield noted that while the intention behind launching “disruptive” products in the property sector is often noble, too many companies are founded by individuals without a deep understanding of the technical, legislative and operational realities of the industry. He observed that these startups frequently enter the market with an anti-agent stance, aiming to offer what they believe consumers want, only to pivot later and end up selling their products to the very agents they initially criticised.
“Like for so many others, what does leave a bad taste in my mouth is to see these ‘disruptors’ launch, almost always with an anti-agent rhetoric about how bad, slow, old-fashioned and expensive we are,” he said, “only for them to fail and then pivot to a model where they then end up selling their product to ‘us bunch of jokers’.”
He added: “Thankfully, you are seeing more and more products being developed by those with detailed technical knowledge and frontline experience, and companies are learning to consult more often and earlier in their journey, leading to better products and offerings.”
Byfield, who is a member of both the Zoopla Lettings Advisory Board and The Lettings Industry Council, said: “Time and time again, we’ve seen products come to market claiming to be disruptors, only for them to fail because they don’t grasp the intricacies of the sector.” He further criticised these companies for focusing on disrupting price points without understanding the underlying operational costs, making their business models commercially unviable.
Byfield also shared his thoughts on the future of technology in the industry, predicting that artificial intelligence (AI) will play a dominant role in the years to come. He likened the current technological landscape to the beginning of the industrial revolution, forecasting a “seismic shift” in how technology will transform daily life and business operations.
“This technological revolution won’t be smooth and will take time to gain momentum,” he commented. “However, once it does, the changes will be dramatic and far-reaching, making many of our current methods obsolete. Companies that fail to adapt risk being left far behind.”
What a boring article. Don’t know why I started reading it
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It’s far from boring when you consider the irony at play. ZPG was once a collective of innovators with deep industry knowledge. Now, with that expertise gone, they rely on people like Mr. Byfield to help them stay ahead of disruptors who are chipping away at an increasingly outdated suite of services.
Kristjan is right that many start-ups lack industry experience, but I’d argue that their technology is genuinely innovative. It’s much easier to pivot with innovation than to try to adapt a legacy system.
I’m currently speaking with an innovative entrepreneur who, after some minor tweaks, has developed a system that could unlock an uncontested £500 million in fee income for agents. Agents will listen to him, and so will the major tech incumbents, who have so far been dismissive and patronising.
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Yea another app that will make agents load of monmey that will go nowhere
I am sent a new innovation every other week that I cabbot aparantly do withput that I never hear of again
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Can I suggest you look at a bit of tech that has been around awhile. It’s called spell check!
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Ouch!
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You have a business because of the failure od SAAS providers to understand and innovate. When the incumbents fail to deliver basic functionality and leave a gap need it’s inevitable someone will fill it. Your solution is the benchmark for why on earth didn’t someone realise a basic function was missing
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Great insight.
Where are these proptech companies, getting funding from?
They pivot, but where they getting funds if they are building the wrong thing in first place?
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I don’t think I’ve written anything earth-shattering or unheard of- but all too often, cutting costs/fees is seen as ‘disruption’- as we have seen endlessly attempted with agency itself. However, if you read the full interview with Assist Inventories, I also praise the new wave of agent-led product development and suggest some great offerings to checkout/keep an eye on and my thoughts on AI and where it’s heading.
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