This is basically a better version of what I came here to say. I worked in a family construction business, and my perspective / experiencr is that good, established contractors do no advertising and have years of backlog (at least for custom homes or major renovations). I like how you define two markets, that's how I have seen it. There are people that are looking for quality and have the experience to know what to look for and what to pay in terms of money and patience, and there are those that watched a show about how to negotiate with your contractor and get three quotes, etc. Ironically, you usually pay less with a good contractor because you're paying for work and not marketing.
I've seen different variations on the "connect you with a contractor" business model, and to me they don't work because good contractors are not a commodity. There is definitely a class of contractor that will go for this, but they are always the worst ones because if they were better they would be loaded up with work without having to pay in to a service that takes a cut from them.
For very routine jobs, this kind of service is provable fine. Like ordering McDonald's from uber eats. And this appears to be what they are initially targeting.