Ticketbis

Last updated
Ticketbis
Type Startup
IndustrySecondary Ticketing Market
Genre Internet
Founded2009, Spain
FounderAnder Michelena
Jon Uriarte
Area served
International
ProductsTickets
Revenue30 Millions
Website Ticketbis official website

Ticketbis is an online platform where users can buy and sell tickets to events. Founded in Spain in 2009 by Ander Michelena [1] [2] and Jon Uriarte, the company operates under the secondary ticketing market (or ticket resale market) alongside several others including industry giant StubHub. [3] [4] Ticketbis is currently present in 31 countries. [5]

Contents

Company

Business model

Ticketbis works as an intermediate between individuals who want to resell or buy tickets to music, sports, theatre and cultural events. The seller determines the price of the tickets. Like the majority of secondary ticketing platforms, Ticketbis charges a commission from each party involved in the exchange.

After the buyer purchases the tickets, the seller must send them out before the event. Tickets are sent to Ticketbis who is in charge of delivering them to the seller. If buyers do not receive their tickets in time for the event, Ticketbis must refund the amount paid.

Ticketbis connects buyers to sellers, where the ticket price is set freely by the seller. In exchange for a percentage of commission from each party involved, Ticketbis ensures that the transaction is done safely and correctly. [6]

History

The company forms part of the secondary ticketing market, an active sector in the US since 2000. When the first platform for ticket reselling, Stubhub, was founded in San Francisco by Eric Baker and Jeff Fluhr, its success was so noteworthy that it was bought by e-commerce giant, eBay, for 310 million dollars 7 years later.

In 2009, Ander Michelena and Jon Uriarte decided to take the ticket resale business to Spain and start Ticketbis. At the beginning stages, they focused their efforts on developing the technical aspects of the platform that would allow users to buy and sell tickets for any type of sporting, music or cultural event. Through this, they would be effective in bringing the resale market from the streets to the web creating a more transparent, safe and organized exchange for users. [7]

In 2016, eBay purchased Ticketbis to become part of eBay Inc.’s StubHub business, the largest ticket marketplace in the U.S. The acquisition of Ticketbis is StubHub’s latest geographic expansion, preceded by the launches in Mexico in May 2016, Germany in September 2015 and the UK in March 2012. [8]

Funding and investors

In 2009, 400,000 euros of capital were raised for Ticketbis’ first round of funding in order to implement the project.

In 2011, a second round of funding of 1 million euros was approved, this time involving the participation of renowned tech-entrepreneurs such as Eneko Knörr (founder and CEO of Ludei and founder of Hostalia), Nicolas Iglesias (founder of Arsys), Fabrice Grinda joined (founder and CEO of OLX), Alec Oxenford (founder of DineroMail) and José Marín (founder and CEO of IG Expansion).

In the following year, Ticketbis raised 900,000 euros and in July 2013 announced 3,5 million euros in funding. [9] The company's most recent round of funding surpassed 5 million euros. [10]

Internationalization

After one year of business operations, the ticketing company became the market leader in Spain and thus began its process of internationalization. In 2011, Ticketbis inaugurated the website in 6 countries : Italy, Portugal, UK, Brazil, Mexico, and Argentina. One year later, in 2012, it was opened in Chile and in 2013, the site was set up in Colombia, Peru, Venezuela, Russia, Paraguay, Germany, and Uruguay.

In early 2014, Ticketbis began operations in France and then later on in the year commenced its expansion into Asia opening up in 7 more countries. [5] [11]

Evolution of the Company
YearCountry
2009Flag of Spain.svg  Spain
2011Flag of Italy.svg  Italy
Flag of Portugal.svg  Portugal
Flag of the United Kingdom.svg  United Kingdom
Flag of Brazil.svg  Brazil
Flag of Mexico.svg  Mexico
Flag of Argentina.svg  Argentina
2012Flag of Chile.svg  Chile
2013Flag of Colombia.svg  Colombia
Flag of Peru.svg  Peru
Flag of Venezuela.svg  Venezuela
Flag of Russia.svg  Russia
Flag of Paraguay.svg  Paraguay
Flag of Germany.svg  Germany
Flag of Uruguay.svg  Uruguay
2014Flag of France.svg  France

Legislation and controversies

Ticketbis complies with the code of practice set out by the EUSTA (EU Secondary Ticketing Association). However, as a company operating under the Sharing Economy, traditional economic sectors have demanded the regulation of the secondary ticket market.

Those who support the existence of the secondary ticket market say it is merely a natural phenomena with the potential to garner greater economic efficiency for buyers and sellers. “A ticket never moves into the secondary market in the first place unless the original vendor has been paid their asking price. [12] [ unreliable source? ] Moreover, the originator would benefit from the seat being filled as this would improve souvenir sales and concessions. [11] [13]

On the other hand, because sellers on the secondary ticket market set the price, there is a wide range of prices to choose from, which can be beneficial, but can also lead to uncertainty for the buyer. [14] Sellers could take advantage of uninformed buyers and thus overcharge with prices of up to 300% above face value. [15] [16]

Opinions

Since its conception in 2009, Ticketbis has not avoided controversy. It has received mixed opinions from both user reviews and the media, with some expressing their support for Ticketbis and with critics who have expressed their negative perceptions of the company's business model, which at times has been referred to as a scam.

The Ticketbis platform is especially relevant for football matches, because they act as an intermediary between those who bought tickets but could not attend that particular match and those who are looking for tickets to attend the match, despite it being illegal to resell football tickets in the UK. [17]

They have also stated that the Ticketbis business model works in alignment with the sharing economy or collaborative consumption market model, which is also used by other startups such as bookcrossing, couchsurfing, Bluemove and Airbnb. [18] [19]

Related Research Articles

Wholesaling Sale of goods or merchandise to retailers rather than end consumers

Wholesaling or distributing is the sale of goods or merchandise to retailers; to industrial, commercial, institutional or other professional business users; or to other wholesalers and related subordinated services. In general, it is the sale of goods in bulk to anyone, either a person or an organization, other than the end consumer of that merchandise. Wholesaling is buying goods in bulk quantity, usually directly from the manufacture or source, at a discounted rate and selling to the retailer at a higher price. The retailer then sells the goods to the end consumer at a higher price making a profit.

eBay American multinational e-commerce corporation

eBay Inc. is an American multinational e-commerce company based in San Jose, California, that facilitates consumer-to-consumer and business-to-consumer sales through its website. eBay was founded by Pierre Omidyar in 1995, and became a notable success story of the dot-com bubble. eBay is a multibillion-dollar business with operations in about 32 countries, as of 2019. The company manages the eBay website, an online auction and shopping website in which people and businesses buy and sell a wide variety of goods and services worldwide. The website is free to use for buyers, but sellers are charged fees for listing items after a limited number of free listings, and an additional or separate fee when those items are sold.

Price discrimination Microeconomic pricing strategy

Price discrimination is a microeconomic pricing strategy where identical or largely similar goods or services are sold at different prices by the same provider in different markets. Price discrimination is distinguished from product differentiation by the more substantial difference in production cost for the differently priced products involved in the latter strategy. Price differentiation essentially relies on the variation in the customers' willingness to pay and in the elasticity of their demand. For price discrimination to succeed, a firm must have market power, such as a dominant market share, product uniqueness, sole pricing power, etc. All prices under price discrimination are higher than the equilibrium price in a perfectly-competitive market. However, some prices under price discrimination may be lower than the price charged by a single-price monopolist.

A grey market or dark market is the trade of a commodity through distribution channels that are not authorized by the original manufacturer or trade mark proprietor. Grey market products are products traded outside the authorized manufacturer's channel.

Ticketmaster Entertainment, Inc. is an American ticket sales and distribution company based in Beverly Hills, California with operations in many countries around the world. In 2010 it merged with Live Nation under the name Live Nation Entertainment.

The Disney Vacation Club (DVC) is a vacation timeshare program owned and operated by Disney Vacation Development, Inc., a subsidiary of Disney Signature Experiences, a division of Disney Parks, Experiences and Products, a segment of The Walt Disney Company. It allows buying a real estate interest in a DVC resort via a flexible points-based membership system. There are an estimated 220,000 club members.

Ticket resale Act of reselling tickets for admission to events

Ticket resale is the act of reselling tickets for admission to events. Tickets are bought from licensed sellers and are then sold for a price determined by the individual or company in possession of the tickets. Tickets sold through secondary sources may be sold for less or more than their face value depending on demand, which tends to vary as the event date approaches. When the supply of tickets for a given event available through authorized ticket sellers is depleted, the event is considered "sold out", generally increasing the market value for any tickets on offer through secondary sellers. Ticket resale is common in both sporting and musical events.

StubHub American ticket brokering company

StubHub is an American ticket exchange and resale company. It provides services for buyers and sellers of tickets for sports, concerts, theater and other live entertainment events. It has grown from the largest secondary-market ticket marketplace in the United States into the world's largest ticket marketplace. While the company does not currently disclose its financials, in 2015 it had over 16 million unique visitors and nearly 10 million live events per month.

Viagogo is a London-based ticket exchange and ticket resale outfit. It is headquartered in the United States and owned by StubHub Holdings. It was founded in 2006 by Eric Baker, the co-founder of StubHub.

Online ticket brokering is the resale of tickets through a web-based ticket brokering service. Prices on ticket brokering websites are determined by demand, availability, and the ticket reseller. Tickets sold through an online ticket brokering service may or may not be authorized by the official seller. Generally, the majority of trading on ticket brokering websites concerns itself with tickets to live entertainment events whereby the primary officially licensed seller's supply has been exhausted and the event has been declared "sold-out". This "sold-out" status increases the ticket's potential market value. Critics of the industry compare the resale of tickets online to ‘ticket touting’, ‘scalping’ or a variety of other terms for the unofficial sale of tickets directly outside the venue of an event.

Until 27 November 2018 Seatwave was an online ticket marketplace for buying and selling tickets to music, sporting and cultural events. Ticket sellers were able to list their tickets on Seatwave and specified what price they would be willing to sell them for. Buyers could browse the site, compare ticket prices and could then purchase the ticket they feel was the best deal. Seatwave's TicketIntegrity guarantee ensured buyers got the tickets they ordered by the day of the event. If they did not, Seatwave would find replacement tickets, or refund the buyer.

A ticket exchange is a market where tickets are bought and sold. Ticket exchanges allow people to buy and sell tickets online. Typically, ticket exchanges are used by individuals wanting to buy or resell tickets from other individuals rather than from the event the ticket is for. Originally, this industry was dominated by street-based touts working outside large events and venues, buying tickets cheaply from people who had spares and selling them on to last-minute buyers. While some street touts may still exist, the advent of the internet has transformed the practice. Secondary markets today are predominantly online. There are two niches of ticket exchanges, also called secondary marketplaces: event tickets and travel reservations.

TicketsNow was an online ticket retailer. It was founded in 1992 by Mike Domek and headquartered in Woodstock, Illinois.

ReDigi was an online marketplace for used digital music, eBooks, games, apps, and software. It claims to be the only cloud storage service that verifies whether each digital file uploaded for storage was legally acquired from an eligible source. ReDigi's Cloud and Marketplace only accept lawfully purchased digital media. The service allowed users to buy and sell pre-owned digital content directly from one user to another. As of December 2020, the website is offline and redirects to a removed LinkedIn profile.

Chris Tsakalakis

Chris Tsakalakis is a Greek-American technology executive. He was the CEO of Kiva, an international nonprofit that crowdfunds loans for underserved people in over 70 countries, resigning in 2022. Tsakalakis previously served as the Chief Executive Officer of Vivino, an Entrepreneur in Residence at Benchmark Capital, the President of StubHub and an executive at eBay. A University of Pennsylvania graduate, he began his career in e-commerce in 1996 and joined eBay in 2003. He was president of StubHub from 2007 to 2014, as the company became the world's largest ticket marketplace and a leading sports and entertainment sponsor with more than 90 partnerships worldwide. Because of StubHub’s influence on the entertainment industry, Tsakalakis was included on the Sports Business Journal’s 2011, 2012 and 2013 lists of the 50 most influential people in the sports business, the Billboard 2012 and 2013 Power 100 lists and the 2010 and 2011 Huffington Post Sports Game Changer lists. Ticket News cited him as "one of the most influential executives in the ticketing industry."

Ticket Liquidator is an online marketplace for live entertainment tickets. It is a division of Ticket Software LLC, a technology company based in South Windsor, Connecticut.

uSell

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Depop is a peer-to-peer social e-commerce company based in London, with additional offices in Manchester, Milan and New York City. The company has an expanding global presence being popularised in countries such as the United States, United Kingdom, Australia, New Zealand, and Italy. It allows users to buy and sell items, most of which are used and vintage pieces of clothing.

The Better Online Ticket Sales Act of 2016 was signed into federal law by President Barack Obama on December 14, 2016. This act was created to thwart attempts by individuals and organization to automate the process of purchasing tickets en masse using ticket bots. Later, these tickets are often resold on third-party sites for profit at a markup over face value, or at a loss. This activity is also referred to as ticket scalping. The BOTS Act outlawed the resale of tickets purchased using bot technology and set a fine of $16,000 for violations of the act, which is enforced by the U.S. Federal Trade Commission.

CashorTrade

CashorTrade is a fan-to-fan face-value ticket-reselling market created in 2009 by brothers Brando and Dusty Rich based in Burlington, Vermont. As of November 2017, the platform had users from 20 countries and had processed over half a million transactions. The platform offers an optional gold membership which provides early notice of available tickets for an annual fee.

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