Behavioural_health_jun2118

What's your business model?

110799

How does DogVacay make money?

DogVacay takes a 15% cut out of every transaction that goes through the site

Innovation series by Steven Loeb
July 19, 2014
Short URL: http://vator.tv/n/3837

Growing up in an apartment in New York City means that  I never had a dog. We had fish, and hamsters and cats, but a dog was just more work than my mother was willing to put in for a pet.

More recently, though, I've been introduced to the wonderful world of dogs, as just about everyone in my girlfriend's family seems to have one. Now I see just how much work they are! Every time her sister drives up here from LA, she has to take her dog with her on the six hour car ride. He's a little guy so it's pretty hard on him.

Maybe I should tell her about DogVacay, winner of the 2012 Vator Splash LA competition. The company is basically an AirBnB for dogs, where dog owners who need to skip town for a couple of days can browse hosts on DogVacay.com to find the ideal home away from home for their pets.

Note: You'll see DogVacay CEO Aaron Hirschhorn, and other great founders from The Honest Company, Whisper, TrueCar, and more) as well as hundreds of investors, media and tech executives. Register before mid-August to get 50% off the ticket price. It's a bargain. Register here. 

So how does the company make money? Pretty simply, actually: DogVacay take a flat percentage of each transaction that occurs on the site.

"We have one revenue stream: when a Guest books a "vacay" for their pet (which can take the form of an overnight visit, an in-home visit, a walk, etc.), DogVacay takes a 15% cut of the transaction," a DogVacay spokesperson told me.

"This covers our operating expenses for providing the platform that allows Hosts to run their sitting businesses on DogVacay, as well as the liability and veterinary insurance we provide for each and every vacay."

While rates start at $25 a night, the hosts are then allowed to set their own rates at high as $100 per night. Payments are sent through PayPal and no direct payments are allowed, as they must go through DogVacay.com for the transaction to be covered by its insurance policy. 

As a private company, DogVacay does not disclose specific revenue numbers.

Founded in 2012, the Santa Monica-based DogVacay has raised $22 million in funding, most recently taking in a $15 million Series B round this past October. Investors in the company include Foundation Capital, DAG Ventures, Sherpa Ventures, Benchmark, First Round Capital and Andreessen Horowitz.

 The company has 15,000 Hosts across the country, and hundreds of thousands of Guests. It hit 500,000 total vacays back in May.

(Image source: petbucket.com)


Related companies, investors and entrepreneurs

11799
DogVacay.com
Startup/Business
Description: DogVacay.com is a community marketplace that addresses the $5B market for dog-boarding and pet-sitting. Instead of paying for a crow...

Related news

Get-listed-300x250

Featured Stories

Splashx_precision_health_register_320px_corrected

Other episodes of this series

How does Coinbase make money?

19336

What's your business model?

by Steven Loeb
Coinbase charges its users fees for buying and selling cryptocurrencies on the platform

How does Pluralsight make money?

19306

What's your business model?

by Steven Loeb
The edtech company charges a monthly or annual subscription fee to individuals and businesses

How does TripAdvisor make money?

19297

What's your business model?

by Steven Loeb
TripAdvisor makes money from advertising, as well as booking fees from hotels and attractions

How does Smartsheet make money?

19280

What's your business model?

by Steven Loeb
The company, which offers a cloud-based platform for work collaboration, has filed to go public

How does Trifacta make money?

19240

What's your business model?

by Steven Loeb
The data wrangling company’s business model focuses on selling licenses of its software
Get-listed-300x250