Sonder: Revolutionizing Hospitality with Design and Technology by Founders Francis Davidson and Martin Picard.
Company profile
Company business details
Motivation to build the product
The founders were motivated by the desire to create a more authentic and enjoyable travel experience, addressing the inconsistencies often found in traditional accommodations. They recognized a gap in the market for high-quality, well-designed spaces that could offer the comforts of home while maintaining the standards of a hotel.Problem that their product solves
Sonder solves the problem of inconsistent experiences in traditional accommodations by managing the entire guest experience and ensuring that all properties meet high-quality standards. The end users are travelers seeking reliable, stylish, and affordable lodging options, making it important for them to have a consistent and enjoyable stay.Their unfair advantage
Sonder's unfair advantage lies in its ability to manage entire buildings, which allows for better control over the guest experience and operational efficiency, setting it apart from traditional hotels and short-term rental platforms.Strategies
Idea Validation Stage
Market Research and Validation
Francis Davidson, while still a college student, conducted extensive online research to understand the vacation rental market. He explored various platforms, particularly focusing on HomeAway, to analyze potential revenue from renting out his apartment. This research helped him validate the business model of renting vacant apartments to travelers, leading to the inception of Sonder.
Pre-Launch (Product Development & MVP)
Pilot Program with College Students
In 2014, Francis and his co-founder Lucas initiated a pilot program by recruiting entrepreneurial college students across 11 cities to rent out vacant apartments during the summer. They shared profits with these students, effectively creating a network of local operators who could manage the rentals, which proved successful and generated significant sales.
Rapid Supply Growth Strategy
In its early stages, Sonder adopted a bold strategy focused on rapid supply growth by identifying and securing properties that met regulatory requirements. The company conducted thorough market research to pinpoint potential properties that could be converted into Sonder units, ensuring they operated within legal frameworks. This aggressive approach allowed Sonder to capture a significant share of the market before competitors could react, positioning the company favorably as the industry faced challenges during the COVID-19 pandemic. By leveraging available capital and focusing on speed, Sonder was able to establish a strong presence in key markets.
Subletting Strategy
Francis Davidson, the founder of Sonder, began his entrepreneurial journey by subletting his apartment while attending McGill University. He identified a gap in the market for subleasing and created a small platform to facilitate this process. This initial venture allowed him to make $53,000 on a $23,000 rent, demonstrating the potential profitability of the idea. This experience laid the groundwork for his future business, Sonder, as he recognized the demand for quality accommodations.
Launch Stage
Experience Design Rethink
The founder of Sonder, Frances, emphasized the ambition to rethink hospitality by focusing on both architectural design and experience design at every touchpoint. This involved creating spaces that feel amazing and reimagining how guests interact with the service. The goal was to make stays more interesting and accessible, democratizing experiences that were previously only available at high price points.
Learn more about Sonder
HEDNA Fireside chat with Francis Davidson, CEO Sonder
Sonder CEO Discusses Future Innovation: Full Video
Sonder CEO Francis Davidson Dealing with Startup Difficulties
