Vacation rental property manager Evolve is laying off 14 percent of its staff — or 164 employees.
In a memo to employees, Evolve’s chief executive officer Brian Egan wrote “We are operating in a market that has become increasingly dynamic and volatile. Specifically, marketwide supply growth has considerably outpaced demand growth, which has led to average daily rates, bookings, and revenue per property coming in below our expectations,” he said.
“This means we will be supporting fewer customers, and will generate less revenue than we planned heading into this year. As a result, we need to reduce the size of our team to align our organization and overall expense structure to this new market context.” The story was first reported by Short Term Rentalz.
The Denver-based company announced a $100 million capital raise last February — Durable Capital Partners led the round. Evolve manages more than 30,000 vacation rentals, and it has raised $235 million. Evolve’s basic plan charges a 10 percent commission and doesn’t include housekeeping or maintenance but does include all aspects of driving rental income as an on-ramp to marketing a property on major channels like Airbnb, Booking.com, and Vrbo. Services include shooting professional photos, creating a listing, offering advice on rate-setting, and handling guest interactions.
Following the raise, in August, Evolve signed a contract with Hopper to add 24,000 homes to Hopper’s app. At the time Eric Schueller, Evolve’s senior vice president of revenue said his company seeks to get incremental bookings from Generation Z guests through the Hopper partnership, and not just shift bookings to Hopper from other distribution partners. Hopper’s guests skew younger than Evolve’s core customers, he added.