Blackbird-backed Kiki shuts down NYC operations
Make us a preferred source
Make us a preferred source on Google
The news: Blackbird-backed subletting startup Kiki is shutting down its New York City operations due to regulatory pressure surrounding short-term rentals.
The company acknowledged it was operating in a regulatory “grey area” and now plans to relaunch in a new, as yet undisclosed, location.
The numbers: According to SmartCompany, Kiki generated just $US76,000 ($119,320) in revenue during its first 10 months in New York — falling well short of its projected $US2.5 million ($3.93 million) in monthly revenue.
The company had raised $US6 million ($9.42 million) in seed funding, led by Blackbird Ventures. A rent guarantee initiative launched in late 2024 cost the company $US13,000 ($20,410) in a single month.
The context: Under New York’s Local Law 18, entire-unit rentals for fewer than 30 days are generally prohibited unless the host is present and registered with the city.
The startup, which began in New Zealand as EasyRent before expanding to Sydney and then New York in 2023, had attempted to work around these regulations through various methods — including a gated access model requiring personal invite codes.
It drew headlines in early 2024 when it announced it was no longer in the business of subletting in New York, instead positioning itself as a club for girls to “thrive not live”. The rebrand was poorly received, and the company subsequently returned to its subletting model.
In an Instagram post, CEO Toby Thomas-Smith described the shutdown as “pretty gutting” and said the team had explored “every possible scenario” before deciding to close operations.
What they said: "Moving to New York City has had its ups and downs, but recent months have seen strong growth and customer interest," a Kiki spokesperson said. "This growth unfortunately has coincided with a decision by city authorities to enforce its rules in ways we think aren’t in the best interests of New Yorkers. Kiki accepts it operates in grey regulatory areas, but that’s not uncommon in tech start-ups and we’re simply not in a position to have a costly legal dispute that could bankrupt us."
“The company has had its challenges, but our experience is that it’s normal for startups, particularly marketplaces, to iterate and look for new markets and new ways of operating,” a Blackbird spokesperson said.
The sources: SmartCompany, Kiki instagram post
