Buying and selling on Craigslist may be convenient, but some people find the prospect of meeting a stranger to swap cash for a leather couch a little creepy.
Santa Monica company Hipswap Inc. has a response. The new marketplace website offers same-day local delivery for an introductory rate of $5. And it does so in a decidedly noncreepy way: with a bright pink van featuring a giant white mustache emblazoned on its side.
The site itself was designed to have more visual appeal, too. Instead of the blue text-based pages on Craigslist, it displays photos. And the site organizes listings into various themed collections; buyers also can follow sellers they like.
For marketing, the company recruited a few celebrities to sell items and give the earnings to charity. “The Real Housewives of Beverly Hills” star Kyle Richards, for example, is selling shoes and dresses she wore in episodes of the reality show on the site and donating the money she makes to breast cancer research.
Chief Executive Rob Kramer co-founded Hipswap with business partner Andrew Skinner last year. The company raised money from investors in August and launched a test version in November. The site officially rolled out in March in seven cities across the country and has since expanded to 13 more.
Kramer said the company is planning to start local delivery in New York this month.
“We discovered having a local delivery service was very appealing and attractive to a lot of our users,” he said.
It’s free to post listings on Hipswap, but the company takes a 3.5 percent commission on sales. EBay, which has a similar business model, charges a nominal listing fee in addition to a 9 percent commission on sales.
The big question: Can it succeed in a crowded market that’s dominated by familiar names? Michael Pachter, managing director of equity research at downtown L.A. investment firm Wedbush Securities Inc., isn’t familiar with Hipswap, but doesn’t see a need for another player in the online marketplace arena.
“Craigslist and eBay both do a great job,” Pachter said. “I think it will be hard for anyone else to be noticed.”
