TTG Toolkit Technology
Next steps for Nexmo
The start-up has fast emerged as a popular communication tool for some of travel’s biggest brands. Matthew Parsons talks to founder Tony Jamous about its rapid rise
in 2012. Fast forward three years and the communications technology firm now counts Airbnb, Uber, Hailo and Expedia as clients, helping them communicate with their customers. If ever there was a poster child
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from the government’s Tech City UK initiative, Nexmo must be it. And with the recent closure of the 207 Old Street location of TechHub, Nexmo relocated to its own office in nearby Featherstone Street, in June. At the opening party, I’m given
a quick tour by Natascha Ryan, business development, Europe, Middle East and Africa. The open- plan offices feature sound-proofed meeting rooms (developers make more noise than the sales teams, Ryan jokes) and a large lecture theatre-style room with beanbags. There’s a real buzz on the
night – understandably, given Nexmo’s exponential growth. This time last year, there were 30 staff; today they number 130 worldwide. And London is now Nexmo’s biggest office in Europe, ahead of Spain and France. Co-founder and
chief executive Tony Jamous (pictured) tells me he is happy to be able to remain in the so-called “Silicon Roundabout”
32 20.08.2015
exmo has been making giant strides in the travel industry since it “started up” in London’s TechHub
area. “Our plan was to stay close to the start-up environment,” he says. “It’s good for staff recruitment and you can find early adopters more easily. “We’re more successful in London,
in terms of making an impact and visibility, compared with San Francisco, where every block is full of start-ups.”
How does it work? Nexmo is a cloud communication platform. It provides companies with the tools to allow developers to embed communication tools into their own apps – whether voice or SMS, using the cloud – bypassing usually expensive carrier networks. “It’s anything to make a person
communicate with an app, or an app communicate with a person,” Jamous says, adding that Nexmo has done “the work behind the scenes” so developers can work on the API (application program interface). Airbnb, a customer since 2012, uses Nexmo as an identification tool – with the phone number acting as both a unique ID, for host and holidaymaker, and SMS tool. “Once you enquire with the host, analysis shows that for every five minutes where there is no communication with the host after the initial contact, the probability of booking decreases 5%,” adds Jamous.
Nexmo’s new offices in London’s Featherstone Street Ping pong at the opening party Hailo and Uber, meanwhile,
use Nexmo to create a “virtual communication proxy”. “You don’t have to share your phone number and you don’t want to give out personal details,” says Jamous. The idea for the company came
from Jamous’s experience in the telecommunications industry, in sales support roles. “I realised this experience was complicated, and it was difficult to connect on a domestic level,” he says. “I set up Nexmo for companies that were tech-savvy, and using API. For companies that wanted to go global, that need was not being met. It can be pricey to have phone calls from around the world if you are a start-up and want to scale quickly.” But it is not for the faint-hearted:
Nexmo customers are typically high-volume, have their own
booking system, CRM (customer relationship management) and in- house developers as well as expert communication developers. “We offer the tools – it’s the customer who customises,” says Jamous. “Companies such as Expedia, for example, have separate API teams.”
Glimpsing the future Having been embedded in the start- up scene, and working closely with the likes of Uber and Airbnb, where does Jamous see the next wave of disruption in the travel industry? “As an end-user, I want a better
experience for when I travel. I’d like to be able to talk to the hotel concierge with in-app communication. It’s about using technology to improve user experience,” he says. “Mobile penetration is increasing, and more players adapting. The market is being driven by web-based companies that use experience as a differentiator. “For example, Uber didn’t invent
taxis – it disrupted the value chain. Technology is an essential part.” It’s a viable message for any travel
firm seeking to make a difference in a highly competitive environment.
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