HomeAway steps up Airbnb fight with Uber, Instacart, Gogobot deals

HomeAway on Wednesday announced deals with a trio of Bay Area startups — Uber, Instacart and Gogobot — taking its battle in the home rental market to Airbnb's home turf.

The Austin-based company led a $20 million funding round for Menlo Park-based Gogobot, which is led by CEO Travis Katz, and is adding the startup's personalized traveler recommendations for hotels, restaurants and activities to its site.

Previous investors Redpoint Ventures and Battery Ventures also contributed funds in that deal and HomeAway CEO Brian Sharples is joining Gogobot's board.

HomeAway didn't invest in Uber or Instacart but is adding services from both San Francisco companies to its website, as well. Uber, led by Travis Kalanick, will make its mobile ride service available on HomeAway, and Instacart's grocery delivery services will be offered there, as well.

The idea behind the arrangements is to enable HomeAway property owners to provide renters with additional information such as directions to the property, Wi-Fi passwords and guidebooks highlighting favorite local attractions, restaurants and activities.

The moves come a week after HomeAway filed a lawsuit against the city and county of San Francisco over a short-term rental ordinance HomeAway alleges is unconstitutional and discriminatory. Company executives claim the ordinance would favor San Francisco-based rival Airbnb Inc.

HomeAway, founded in early 2005, operates websites listing vacation home rentals. It employs about 1,542 workers, including 612 outside the United States. About 900 work at HomeAway offices spread throughout Austin.

Last week, company shares slumped after HomeAway reported lower third-quarter profits and its fourth-quarter revenue estimates missed analysts' projections.

Cromwell Schubarth is the Senior Technology Reporter at the Silicon Valley Business Journal.