Priv and BeGlammed, two beauty service-on-demand platforms, announced on Monday that the companies are merging. The companies will create a new business under the name Priv that covers 32 markets and brings together their beauty and wellness services under one app.
With the merger, the only reference to BeGlammed will be in a new slogan, “Be Glammed on demand.” Additional changes will include a new, mandatory 20% gratuity for service providers (which was already a part of the BeGlammed business) and a new logo, both of which will debut by the end of June. Previously, Priv was in eight markets, including Chicago and Los Angeles, and focused on beauty and wellness services such as manicures and massages. BeGlammed focused on only beauty services, like hair styling and makeup applications.
Priv and BeGlammed, which were both founded in 2014, collectively have over 500,000 customers and 30,000-plus beauty professionals on their platforms. The companies declined to disclose the financial terms of the merger, but Joseph Terzi, founder of Priv, said both companies’ revenues were “pretty equal” and that the company expects to grow total revenue by 150% by the end of 2019.
Though there have been some concerns by investors and media about the overcrowding in the beauty services segment, Terzi said that is exaggerated and not the cause of the Priv and BeGlammed merger.
“Any saturation that people think exists is unfounded, in my opinion,” he said. “In my conjecture, about 85% to 90% of all [beauty service] transactions will happen between us and one other competitor in the space.”
Since 2011, a host of on-demand beauty services have popped up. First, there was StyleSeat and Vensette, followed by BeGlammed, Priv, GlamSquad and Ruuby in 2014. Prior consolidations in the space include BeautyBooked buying StyleSeat in 2016, Beautified going out of business in around 2014 and Veluxe acquiring Glamsquad in July 2018. Glamsquad is the largest on-demand beauty services platform, with over 1,700 freelance stylists and more than 700,000 completed appointments, according to the company. It expanded into selling its own makeup and hair products (in May 2019 and December 2018, respectively) to diversify away from being a pure play beauty services provider and add additional revenue opportunities.
The first steps following Priv and BeGlammed’s merger include combining both the companies’ data and their social media accounts. Between now and the end of June, customers can continue to book services through BeGlammed.com; however, the booking will be pushed through the back end to Priv’s platform. On Monday, customers who opened the Priv app were met with a message from an automated customer service program, dubbed Angelica, informing them about the merger. GoPriv.com and BeGlammed.com also announced the news.
“We took a very careful approach to the design and branding of the joint company. There are slight changes to the styling of the brands, but we want it to be a marriage of two self-care brands and a merger of equals,” said James Bradicich, vp of marketing and business development for Priv.
Following this phase, Priv, which now has 20 full-time employees (both Priv and BeGlammed had 10 full-time employees), will focus on expanding its event services, corporate wellness and business development units. BeGlammed heavily focused on event activations for corporate clients like Beautycon, Netflix and, most recently, the OGX hair-care brand at the Governor’s Ball music festival. Bradicich declined to say how many events BeGlammed serviced but said it was in the “thousands” and that its business-to-business unit (which included corporate events and partnerships) increased 200% every year since 2014. Employee benefits partners include Nike and Facebook wherein employees nationwide are provided discounts on services like hair styling and nails. With the merger, these services will expand to include Priv’s services, including massages, men’s grooming and personal training sessions.
A focus on wedding services will be a newer opportunity for the company, as these services – which can include hair, makeup and nails for the bride, groom and wedding party – can generate 300% higher revenue per client than the average booking cost for a regular service, Bradicich said. BeGlammed’s prices ranged from $40 for a manicure up to $250 for a Halloween makeup application, while wedding services for a bride began at $125. With its expanded geographical presence, Priv will focus on localized marketing campaigns in its 24 new markets, such as Dallas and Washington, D.C. These will be rolled out by the end of the year.
“Overall, the merger provides us with more resources. This consolidation is about taking the beauty team to the next level,” said Bradicich. “This merger is a new journey. We are ready for it and to take the business to the next level.”