uSwitch
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| Type | Subsidiary |
|---|---|
| Industry | Price comparison service |
| Founded | 2000 |
| Headquarters | Floor 2, Centro 3, 19 Mandela Street, London, NW1 0DU, United Kingdom Tel: 020 7208 2929 / 0800 093 0607 |
| Parent | Forward Internet Group |
| Website | www.uswitch.com |
uSwitch.com is a UK-based price comparison and switching website started in 2000. The site allows consumers to compare prices for a range of energy, personal finance, insurance and communications services. According to The Times, uSwitch is one of the two most established price comparison websites, and has been highlighted as being among the best money-saving websites for students.[1]
The site handles gas, electricity, water, home telephone, broadband, digital television, mobile phones, personal finance products, heating cover and car insurance, with a number of new markets in the pipeline.
uSwitchforBusiness.com is uSwitch's energy price comparison and brokerage service for businesses.
uSwitch.com is accredited by Consumer Focus, the energy watchdog in the UK.
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[edit] Business model
uSwitch.com asks consumers a range of questions about factors such as price, location, service type and payment method. The site’s calculators then use this information to scan relevant product providers and come up with a range of cheaper deals or deals that meet the user’s specific criteria e.g. green energy plans. The user can then either directly approach the provider of the deal they are interested in or, where uSwitch has an arrangement with the provider, they can switch there and then.
There are no direct costs to consumers for the service. The company receives commission from some suppliers when a customer chooses to switch through the uSwitch site.
uSwitch, like some of its competitors, promotes its business with heavy use of press releases, generally based on research; uSwitch sees itself as a consumer champion. Some of these press releases have been criticised by the organisations of which they are critical, such as the British Bankers Association, BT and British Gas for being inaccurate and misleading.[citation needed]
[edit] Relationship with Consumer Focus
uSwitch played a role in the industry consultation which led to the establishment of a voluntary code of practice — the Energywatch Confidence Code (now known as the Consumer Focus Confidence Code) — in 2002.
Whilst uSwitch.com is accredited by Consumer Focus, the energy watchdog in the UK, the relationship between the two organisations has not always been harmonious. In September 2007, Consumer Focus found that information provided by uSwitch's energy price comparison website was 'biased and not impartial' and uSwitch were provided with notice that the Consumer Focus Confidence Code had been breached.[2]
The September 2007 minutes of the Consumer Focus Management Board Meeting, and press reports, show that the company was asked by Consumer Focus to change how it displays comparison results and information so that consumers can enjoy unbiased results.[3][4] The company complied with these requests and has remained accredited.
[edit] Company history
uSwitch.com was the brainchild of Lord Milford Haven. It was set up in September 2000 with an initial £4 million investment to take advantage of the UK’s deregulated gas and electricity markets. The company subsequently expanded into the telephony and communications markets in 2001. In the same year it also bought competitor buy.co.uk followed by local community information website UpMyStreet.com in 2003.
uSwitch.com was itself acquired by US media conglomerate, E.W. Scripps Company in March 2006 for £210 million ($366 million). The purchase added a second freestanding interactive media business to its portfolio alongside leading US product price comparison site, Shopzilla.[5]
In February 2008, E.W. Scripps Company recorded a $411 million pre-tax charge releated to the uSwitch acquisition, contributing to an overall $256 million loss for Scripps in the last quarter of 2007. The scale of the writedown reflects more realistic revenue expectations due to lower than expected levels of switching.[6]
In December 2009, uSwitch was acquired by Forward Internet Group for $10.3 million in cash.[7] Forward is a privately funded collection of internet-based businesses focused on consumer engagement and innovation. Forward3D is the group's 3D search agency (formerly known as TrafficBroker) and Forward Innovations is the consumer division which focuses on price comparison and switching, including brands such as InvisibleHand and Omio.
[edit] Partners and affiliates
uSwitch works with more than 130 direct partners and 2,000 affiliate partners, providing their web sites with co-branded comparison tools for a range of essential home services. uSwitch’s calculators also appear on many other websites.
Major partners include Yahoo, AOL, Wanadoo, Orange, Virgin Media, People’s Champion and Johnston Press.[5]
[edit] See also
[edit] References
- ^ "Best money-saving websites for students". The Times (London). September 29, 2007. http://business.timesonline.co.uk/tol/business/money/article2546740.ece. Retrieved 2007-09-29.
- ^ Management Board Meeting Minutes and Action NotesPDF, energywatch, 20 September 2007
- ^ Brignall, Miles (December 11, 2006). "uSwitch accused of misleading customers". The Guardian (London). http://money.guardian.co.uk/utilities/story/0,,1969281,00.html. Retrieved 2007-09-29.
- ^ "uSwitch forced into website change". thisismoney.co.uk. September 13, 2007. http://www.thisismoney.co.uk/consumer/bills/article.html?in_article_id=424305&in_page_id=510. Retrieved 2007-09-29.
- ^ a b "Scripps acquires uSwitch". E. W. Scripps Company press release. March 16, 2006. http://pressreleases.scripps.com/release/834. Retrieved 2007-09-29.
- ^ Scripps Files 10-K, Reports Final Fourth Quarter and Full-Year Results, MSN Money, February 29, 2008
- ^ Scripps Networks 10K March 1, 2010
[edit] External links
- Beware ‘biased’ switching sites, The Sunday Times, June 10, 2007
- Energy firms are the worst offenders for inaccurate billing, The Times, September 25, 2007
