Pillow is a management solution for multifamily short-term rentals.[1] Residents can host short-term rentals while multifamily owners and property managers have control over the process. Multifamily operators can also list vacant units for short-term rentals. The company, which focuses on urban centers, is currently operating in 35 cities including San Francisco, Denver, Seattle and Los Angeles.[2][3] It is offered in apartment complexes like Livcor, BH Management, Blanton Turner and First Communities.
Industry | Short-term rental management |
---|---|
Founded | July 2013; 5 years ago |
Founders | Sean Conway, Justin Miller, Todd Conway, Dan Palumbo |
Headquarters | San Francisco, California |
Parent | Expedia Group |
Website | www.pillow.com |
On October 25, 2018, the Expedia Group announced that it had acquired Pillow.[4][5][6]
History[edit]
In 2013, Sean Conway, Justin Miller, Todd Conway and Dan Palumbo launched Airenvy, Inc.[7] The founders renamed the company Pillow Homes, Inc. in 2014. The idea for the service was thought of by Sean Conway, Justin Miller after they sold their first company Notehall to Chegg, and began traveling the world.[8]
Conway listed his San Francisco property on Airbnb while he was traveling, and realized there was a need for an easier way to manage his property while away. During the company's first months, the founders started listing their San Francisco apartments on Airbnb and staying with each other to test out their new short-term rental management ideas. Within the first year, the company received their first round of funding at $2.4 million and moved to an office location in San Francisco.[9]
Pillow raised $16.15 million in investment capital in three rounds of funding in 2014-2017.[10][11] On November 5, Pillow announced its partnership with Airbnb along with San Francisco's largest building owner, Veritas Investments.
The company launched its mobile applications, Pillow for iOS and Android, for property residents and cleaning professionals in all their serviceable locations.
Business Model[edit]
Pillow operates as a multifamily short-term rental management solution. Owners and property managers have control over the short-term rental process. They are able to monitor who is in the building, set building restrictions, while receiving a percent of the profits.[12] The company helps residents stay in compliance with local regulations cities are placing on short-term rentals by monitoring the rules. Landlords who enroll their buildings in the Pillow program can rent out vacant units through the platform. Pillow includes guest access to buildings and a verified network of cleaners for turnover services.[13][14]
Financing[edit]
Pillow publicly announced their seed funding round in January 2015 with Homebrew Ventures as their lead investor, to bring their total funding to $2.65 million.[15][16]
In June 2017, Pillow raised $13.5 million in new funding led by Mayfield, with participation from Sterling.VC, Peak Capital Partners, Expansion VC, Chris Anderson, Gary Vaynerchuk, Dennis Phelps and Veritas Investments.[17] During the same time, Pillow released its newest product, Pillow Residential, a management platform for short-term rentals in multifamily apartment complexes.
References[edit]
- ^Farran Powell (9 March 2015). 'Airbnb Sub-Economies Help Users Avoid 'Host Fatigue' and Boost Profits'. Main Street.
- ^Ryan Lawler (20 January 2015). 'Pillow Raises $2.65 Million To Take The Friction Out Of Airbnb Rentals'. TechCrunch.
- ^Althea Chang (9 October 2015). 'The 1-year lease a thing of the past: CEO'. CNBC.
- ^Aisha Al-Muslim (25 October 2018). 'Expedia Buys Pillow and ApartmentJet, Moves More Into Airbnb's Turf'. Wall Street Journal.
- ^Waverly Colville (25 October 2018). 'Expedia soars after earnings beat'. CNBC.
- ^Nat Levy (25 October 2018). 'Expedia acquires 2 startups that make it easier to list apartments on HomeAway'. GeekWire.
- ^Taylor Soper (13 April 2015). 'Fresh off a $2.7M funding round, Pillow launches Airbnb listing management service in Seattle'. GeekWire.
- ^David Ongchoco (26 December 2015). 'Young & Entrepreneurial: Second-Time Entrepreneur Shares The Realities of Starting-up After An Acquisition'. The Huffington Post.
- ^'Short-term rental manager Pillow Homes raises $2.7 million'. NBT World.
- ^Carolyn Said (20 January 2015). 'Pillow lands $2.65 million to help Airbnb hosts'. SFGate.
- ^Lawler, Ryan. 'With $13.5M in new funds, Pillow partners with building owners to make rentals Airbnb-friendly'. TechCrunch. Retrieved 2017-11-02.
- ^Kira Brecht (11 July 2016). 'Rent a Room: How to Turn a Spare Bedroom into Cash Flow'. The Ticker Tape.
- ^'Startup pitch: Pillow, after its $2.7M raise, will run your short-term rental for you'. Tnooz. 3 February 2015.
- ^Marisa Kendall (8 April 2016). 'Airbnb spawns network of 'ecosystem' companies'. The Mercury News.
- ^Marlize van Romburgh (20 January 2015). 'Short-term rental manager Pillow Homes raises $2.7 million, launches 'guaranteed income' service for homeowners'. San Francisco Business Times.
- ^Mike Billings (21 January 2015). 'The Daily Startup: Coinbase Lands Funding From VCs, Banks and NYSE'. The Wall Street Journal.
- ^Lawler, Ryan. 'With $13.5M in new funds, Pillow partners with building owners to make rentals Airbnb-friendly'. TechCrunch. Retrieved 2017-11-02.
Private | |
Industry | Pillows |
---|---|
Founded | 2004 |
Founder | Michael J. Lindell |
Headquarters | Chaska, Minnesota, United States |
Number of employees | 1,500 |
Website | www.mypillow.com |
My Pillow, Inc. is a pillow manufacturing company based in Chaska, Minnesota, United States.[1] The company was founded in 2004 by Michael J. Lindell, who invented and patented MyPillow, an open-cell, poly-foam pillow design. My Pillow has sold over 41 million pillows, due mostly to My Pillow’s TV infomercials.[2][3] The company started with five employees in 2004 and had 1,500 employees as of 2017.[4]
- 1History
- 2Operations
History[edit]
Origin[edit]
My Pillow was founded by Minnesota native Michael J. Lindell.[5][6] For years he researched pillows and sleep disorders and experimented with fillers and fabrics before creating and patenting MyPillow, an open-cell, poly-foam pillow design.[7] To help fund the development of the pillow, Lindell sold four bars he owned in Carver County, Minnesota, and mortgaged his house.[1][4] At first, Lindell hand-sewed the pillows himself and handled all the sales and distribution with help from his family.[4]
The first MyPillow was sold in 2005 at a kiosk in Eden Prairie Center, a mall in Eden Prairie, Minnesota.[4] For the next six years, the company struggled, selling at mall kiosks, state fairs, and trade shows.[8]
Promotion[edit]
The company's success took off after launching an infomercial in October 2011.[9] The thirty-minute show was shot in one day in front of a live studio audience and cost $500,000 to produce and launch.[10] As of September 2013, the infomercial was still running an average of 200 times per day on local and national networks. Since it first aired, My Pillow has sold more than 30 million pillows and grown from 50 employees to over 1,500.[3][10][11]
In July 2015, Lindell and My Pillow sponsored an attempt to set a new Guinness World Record for the world's largest pillow fight at a St. Paul Saints baseball game. The fight featured 6,261 participants, beating a previous record of 4,201.[12]
In May 2018, Lindell and My Pillow again broke the Guinness World Record for the world's largest pillow fight, this time at the evangelistic PULSE Movement event held at the U.S. Bank Stadium, after Lindell led over 45,000 people in prayer. [13][14][15]
In late March 2018, student activists from the Stoneman Douglas High School shooting, including David Hogg, called for a boycott of advertisers on the television show The Ingraham Angle on Fox News Channel, after host Laura Ingraham made disparaging comments about David Hogg.[16] Dozens of advertisers subsequently vowed to no longer pay for advertising on The Ingraham Angle, but My Pillow continued to advertise on the show and increased their advertising buy on The Ingraham Angle by 625% during the first week in April 2018.
In addition to its pillow line, My Pillow now offers a variety of sleep products such as mattresses, mattress covers, sheets, and animal beds.[17]
Operations[edit]
My Pillow’s headquarters, call center and customer service center are located in Chaska, Minnesota.[1] The company’s 70,000 square foot manufacturing plant in Shakopee produces approximately 25,000 pillows per day.[11][18] All products are marketed as 'proudly American made'.[19]
Retail[edit]
My Pillow opened its first retail store in Burnsville, Minnesota, in 2012 and, as of 2017, had grown to 17 locations in Minnesota, Iowa, North Dakota, South Dakota, and Nebraska.[20] My Pillow products are also offered on QVC, at major retailers, trade shows, and from the My Pillow website.[9][21]
Design and technology[edit]
The Pillow Company Review
My Pillow products are a patented design, involving a mix of different-sized pieces of open-cell poly-foam. Lindell claims to have tested 94 different foams before deciding on the right one.[4] The pieces are chopped to specification by a machine Lindell developed based on a piece of farm equipment. The mix also contains a resin that enables the foam to retain much of its shape when molded to the user's preference. The pillows are non-allergenic, dust mite-resistant, washable, and dryable.[4]
Awards and recognition[edit]
In 2013, QVC awarded My Pillow its Q-Star Award for Product Concept of the Year.[22]
Charitable work[edit]
A portion of MyPillow proceeds go toward the Lindell Foundation, a charity that assists addicts, veterans, cancer patients, and other people in need.[18][23] In March 2015, My Pillow donated pillows to the Sandra J. Schulze American Cancer Society Hope Lodge facilities, which houses patients and their caregivers when traveling for treatment.[24][25]
Lawsuits and settlement[edit]
In April 2016, a class action lawsuit was proposed for the pillows being falsely advertised, among the complaints being that Lindell is marketed as a 'Sleep Expert,' despite having no board certification or special training in sleep medicine.[26] The Better Business Bureau has received 220 complaints regarding the company from 2013-2016.[27]
In November 2017, the lawsuit, which challenged the appropriateness of the marketing, packaging, and sale of MyPillow products, including health claims about the product, buy one get one promotions, and the use of third party endorsements and logos, was settled.[28]
On November 1, 2016, My Pillow agreed to pay $1 million ($995,000 in civil penalties and $100,000 to California charities benefiting the homeless and victims of domestic violence) to settle a false advertising lawsuit brought in Alameda County Superior Court by Alameda County and eight other California counties.[29] The lawsuit challenged the company's marketing claims, which asserted without proof that its pillows could treat symptoms of fibromyalgia, restless leg syndrome, sleep apnea, cerebral palsy, acid reflux, and other conditions.[29] As part of the settlement, the company was banned 'from making claims in California that its pillows can cure or treat diseases and their symptoms without a human trial to back up the statements.'[29]
Ratings and reviews[edit]
The Pillow Company Dalton
In January 2017, the Better Business Bureau (BBB) announced it had revoked the accreditation for MyPillow and had lowered their rating from an A+ to an F[30] based upon numerous consumer complaints. The main issue addressed by the BBB was the constant use of their buy one, get one free offer. The BBB's Code of Advertising requires that offers or discounts must be made for a limited time, or the deal becomes the normal price of the product.[31]
References[edit]
- ^ abcMichael J Lindell, 'MyPillow HQ moves to Chaska,'Chaska Herald, June 16, 2015.
- ^Rothman, David. 'The story of the My Pillow king'. CBSN. CBSN. Retrieved 8 August 2018.
- ^ abWells, Jane. 'How this entrepreneur went from a crack addict to a self-made multimillionaire'. CNBC. CNBC LLC. Retrieved 19 December 2017.
- ^ abcdefJohn Vomhof Jr., 'My Pillow soars after informercial,'Minneapolis / St. Paul Business Journal, June 22, 2012.
- ^Penelope Green, 'The Pillow Cure,'The New York Times, February 11, 2015.
- ^C.J., 'Case of the Missing Pillows,'Star Tribune, January 16, 2010.
- ^Nick Mason, 'My Pillow receives three-month reprieve,'Chaska Herald, July 17, 2012.
- ^Laura Baverman, 'Dangers of sudden success sink in for MyPillow founder on eve of new infomercial,'Upstart Business Journal, December 16, 2013.
- ^ abSam Black, 'My Pillow moving 200 jobs to Shakopee, opening retail stores,'Minneapolis / St. Paul Business Journal, August 23, 2012.
- ^ abJohn Ewoldt, 'Sales stay plump for Chanhassen-based MyPillow,'Star Tribune, September 15, 2013.
- ^ ab'The Man Behind The Passion Of MyPillow,'CBS Minnesota, December 25, 2013.
- ^'Saint Paul Saints hold world's largest pillow fight'. Burlington Free Press. Retrieved 26 December 2016.
- ^'Largest pillow fight'. Guinness World Records. Guinness World Records Limited. Retrieved 8 August 2018.
- ^'PULSE Events'. PULSE. Retrieved 8 August 2018.
- ^'Twin Cities Pulse Event'. Michael J Lindell. Retrieved August 8, 2018.
- ^'Ad Prices On Fox's 'The Ingraham Angle' Fall In The Wake Of Advertiser Boycott'. www.forbes.com.
- ^'MyPillow Mattress'. www.mypillow.com. Retrieved February 14, 2019.
- ^ ab'My Pillow' founder opens up about addiction,'Salvation Army Website, December 29, 2015.
- ^J.W. Najarian, 'Michael J. Lindell Inventor of My Pillow and Founder of the Lindell Foundation,'On Purpose Magazine, April 6, 2012.
- ^“Places to Buy,”My Pillow Website, retrieved January 14, 2016.
- ^'The Preposterous Success Story of America's Pillow King'. Bloomberg BusinessWeek. Bloomberg L.P.
- ^Nichole Dobo, 'Pillow business earns QVC award,'The News Journal, February 20, 2014.
- ^J.W. Najarian, 'MyPillow and Orange County Choppers Unveil Custom Motorcycle at Mall of America,'On Purpose Magazine, April 6, 2012.
- ^Hannah Tran, 'Large Pillow Donation Brings Comfort to Hope Lodge,'ABC6 News, March 4, 2015.
- ^Jeff Hansel, 'Pillow donation brings comfort to cancer patients,'PostBulletin.com, March 5, 2015.
- ^Tassin, Paul (April 11, 2016). 'My Pillow Class Action Says Pillows Are Falsely Advertised'. Top Class Actions. Retrieved September 3, 2016.
- ^'BBB Business Profile - My Pillow, Inc'.
- ^Bucher, Anne (28 November 2017). 'MyPillow BOGO Class Action Settlement'. Top Class Actions. Retrieved 16 December 2018.
- ^ abcFilipa A. Ioannou. 'MyPillow maker to pay $1 million in false advertising settlement'. San Francisco Chronicle. Retrieved 1 November 2016.
- ^''My Pillow' downgraded to an F rating by Better Business Bureau'. WTHR. 4 January 2017.
- ^'BBB revokes MyPillow accreditation'. ABC 10. KXTV. 2017-01-02. Retrieved 2017-01-03.
External links[edit]
Find out whether it's the 'most comfortable pillow you’ll ever own'
If you’ve been up late channel surfing—maybe because you’re having trouble sleeping—chances are you’ve come across the infomercial for My Pillow. The ad for My Pillow is running “constantly somewhere in the U.S.” every day across multiple networks, and 10 times per day on the Fox network alone, according to My Pillow inventor and manufacturer Mike Lindell.
The company makes some bold claims for what it calls the “most comfortable pillow you’ll ever own,” including an “exact custom fit.” Explains Lindell, “You can adjust the My Pillow to make it fit you. The foam pieces interlock and hold that position without going flat, so you get support where you need it.” That results in “deeper, longer REM sleep,” according to the pillow’s packaging. (Check our comparison of sleeping pills for insomnia.)
Update: Nov. 3, 2016—Read about the My Pillow settlement in a consumer lawsuit over health claims.
More on Sleep
Consumer Reports bought three My Pillows to test. Although we weren’t able to test that REM sleep claim, we did examine them inside and out. My Pillow describes itself as having “3-piece interlocking fill,” but it actually has thousands of torn polyurethane foam pieces in three sizes. We were able to shift the foam pieces around to different positions, and they did seem to stay put under pressure. The case is 100 percent cotton, and it didn’t have any noticeable off smells like some new pillows can.
How does it feel? Our tester described My Pillow as “kind of lumpy, but comfortable.” We also polled staffers who bought My Pillow on their own. Most said they bought it to help alleviate a sleep problem such as insomnia, neck pain, or snoring. Half of the 18 staffers said it helped a lot, 17 percent said it helped a little, and 33 percent said it didn’t help at all. Only one-third of the group said they would buy My Pillow again. (Use these exercises to help stop snoring.)
The 60-day money-back guarantee means that you can return My Pillow; you’ll have to pay for shipping and handling on both the original purchase and the return. Exchanges are free, however, including shipping.
In the Market for a New Mattress?
Consumer Reports tests innerspring, memory foam, and adjustable air mattresses. These CR Best Buys combine performance and value.
Innerspring
- Sealy Posturepedic Hybrid Trust Cushion, $1,275
- Charles P. Rogers St. Regis Pillowtop, $1,100
- Denver Mattress Doctor's Choice, $500
Memory foam
- Novaform 14' Serafina Pearl Gel (Costco),$800
- Tuft & Needle Ten,$500
Adjustable air
- Sleep Number c2 Bed, $800