Ticketbis

Last updated
Ticketbis
Startup
IndustrySecondary Ticketing Market
Genre Internet
Founded2009, Spain
FounderAnder Michelena
Jon Uriarte
Headquarters
Bilbao   OOjs UI icon edit-ltr-progressive.svg
,
Spain   OOjs UI icon edit-ltr-progressive.svg
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 & 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 Knorr (founder and CEO of Ideateca and founder of Hostalia), Nicholas Churches (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] 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]

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References

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  3. The Gaffer (10 February 2014). "Ticketbis – the best way to buy or sell match tickets". championsleague.ca. Retrieved 18 January 2015.
  4. Yakub Qureshi (8 May 2014). "Fury as ticket for City's crunch match appears on eBay". Manchester Evening News. Retrieved 18 January 2015.
  5. 1 2 Jesse Lawrence (16 October 2014). "Ticketbis Seeks To Capture Untapped Secondary Ticket Market of Asia". Forbes. Retrieved 18 January 2015.
  6. Ticket Business (15 March 2009). "Legal Information". Ticketbis. Retrieved 18 January 2015.
  7. Charlie Dhanak (4 June 2014). "Where to buy World Cup tickets last minute". JBI Digital. Archived from the original on 16 February 2015. Retrieved 18 January 2015.
  8. eBay press release (24 May 2016). "eBay Completes the Acquisition of Ticketbis". eBay. Retrieved 30 March 2017.
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  11. 1 2 Steve O'Hear (2 October 2014). "Spanish After-Market Ticket Exchange Ticketbis Scores Another €5.2M". Tech Crunch. Retrieved 18 January 2015.
  12. Tom Giovanetti (5 August 2013). "Protecting Secondary Markets for Tickets". The Institute for Policy Innovation. Retrieved 13 March 2015.
  13. Europe Economics (14 September 2009). "Analysis of the Secondary Sales Market for Tickets" (PDF). Europe Economics. Retrieved 18 January 2015.
  14. Compromisorse (1 February 2013). "Ticketbis.com and users donate $ 3,000 to Doctors Without Borders". Compromisorse. Retrieved 18 January 2015.
  15. Russell Adams (27 September 2006). "Baseball-Playoff Seats Get Harder to Score". Wall Street Journal. Retrieved 13 March 2015.
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  17. https://www.telegraph.co.uk/sponsored/lifestyle/ticketbis/11959958/how-does-ticketbis-work.html
  18. http://www.elreferente.es/tecnologicos/directorio-plataformas-economia-colaborativa-espana-28955
  19. http://www.expansion.com/2015/02/27/emprendedores-empleo/emprendimiento/1425066593.html