The StubHub Story

Sporting and live music events in this country have been main entertainment options for the public for decades. But prior to Y2K the common fan was not being adequately served by the existing options for purchasing tickets to these events. The best tickets were never even available because season ticket holders, corporate sponsors and newly created fan clubs were securing all the tickets in advance. For the very hottest events, even the remaining less desirable seat locations were selling out in mere minutes. For years the only option fans were left with was hoping to find a street scalper outside of the event and take their chances. Counterfeit tickets were a concern and without knowing all the pricing options there were risks of scams and unfair ticket values.

These imperfect options left fans without a trusted source of getting access to the live events they wanted. Fans were confused and had many unanswered questions. Where to go? What's a fair price? How does the buyer actually get the tickets? Will they get them in time? How do they know they are legitimate tickets?

Contrast this dynamic with that of the U.S. Stock Market for instance. The situation is very different when an investor makes a decision to buy or sell a share of stock; they have clear expectations and systematic processes are in place to provide:
  • Fair and open visibility to pricing
  • Timely execution
  • Guaranteed performance for a specified fee
The world of tickets had been left un-served, until StubHub.

Since its inception in 2000, StubHub has been providing a similar set of services for the "secondary" ticket market, the aftermarket where millions of tickets are bought and sold second hand. With the secondary ticket market estimated to be about $10 billion annually in the United States, there is a clear demand and opportunity for the services that StubHub has perfected for the ticket buying public.

StubHub's innovative approach solves the problems that existed previously:
  • Pricing is transparent and reflects fair market conditions. StubHub is a true trading platform with fair market prices that are driven by supply and demand (i.e. the buyers and sellers).
  • The process is 100% guaranteed. Tickets arrive in time. StubHub utilizes overnight delivery as well as local will call centers for "last minute" transactions, so that buyers receive their tickets in time to attend the event and sellers receive timely confirmation of their funds.
  • The costs are clear and consistent. StubHub charges a minimal transaction fee to both buyers and sellers, so that everyone involved in the transaction knows exactly what the total costs will be.
StubHub has structured its website and service package to optimize the buying and selling process, making it both protected and convenient for all parties. Tickets cannot be listed without a valid credit card, eliminating potential sales fraud; buyers must use a credit card to purchase their tickets, eliminating the "non-paying buyer" syndrome. Pre-paid FedEx labels are sent to sellers upon purchase, facilitating fulfillment. Buyer funds are escrowed until ticket delivery. Throughout the fulfillment process, StubHub uses the power of the Internet to keep all parties in the transaction updated, with additional customer service representatives available seven days a week via phone and email for the sometimes needed personal touch.

StubHub's fair and open, market-based approach has already won a significant amount of support from large venues, teams and partners, including the Indianapolis Colts, Chicago Bears and Washington Redskins. StubHub also has partnerships with media companies such as AOL and Westwood One as well as universities like the University of Southern California and Georgetown.

In 2007, StubHub was acquired by eBay Inc. and continues to be the leading destination for fans seeking the most complete ticket buying or selling experience. The company's reach continues to grow, including charity auction services, additional on-line marketing partnerships, and advertising in key markets across multiple media. As long as there are sporting events, concerts or other performances that are in high-demand, StubHub will continue to be that trusted and efficient clearinghouse through which buyers and sellers can safely transact.