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Homejoy says goodbye

blog.homejoy.com

41–50 of 410 posts

Re: Homejoy says goodbye

#41

what happened?

The biggest is probably that the home care industries operate on such a shoe string budgets that there really isn't all that much room for a middleman to take a cut.

This isn't taxis where you can bank on regulatory arbitrage to take a cut. They seemed to be trying to make money on customer acquisition and scheduling, but I'm sure they realized too late that their partner companies don't spend a huge amount of money on those activities.

Re: Homejoy says goodbye

#42

As a former customer (have not used in years), I actually felt uncomfortable with the cleaners. Not because of anything they did, but because you could just tell they were low income and being paid very little by Homejoy (I think less than $15/hr). It didn't feel right, and I stopped using them in part because of that.

So then they didn't get paid and you didn't get a clean home? That seems like a loss for both parties.

Also, Homejoy let you tip, with 100% of that money going to the cleaner(s). I usually gave the cleaners a 20% tip.

Re: Homejoy says goodbye

#43
post #7

I used Homejoy and I liked it's ease of use. But after the cleaning lady they sent me was done, she offered me her direct phone # and told me I could contact her directly for any future cleaning needs. I always wondered how this business model was going to work if Homejoy's contractors could just give out their phone # at the end of their first service and the customer could just contact them directly for any future…

Recurring business is really tough when you're effective just introducing customers to other businesses. Thumbtack handles this by not even addressing the recurring aspect, and focusing on getting good introductions. Recurring revenue is great, but how does a matchmaking service continue to provide value once a good fit had been found?

Re: Homejoy says goodbye

#44

For a house with 4 roommates, this service worked great as a solution to the "tragedy of the common [space]" problem. We've been using them for a year or more now and I'll be sad to see them go. I hope they follow through on putting people in touch with the actual cleaners.

How are you not in touch with the person who cleaned your house for a year?

Re: Homejoy says goodbye

#45

For a house with 4 roommates, this service worked great as a solution to the "tragedy of the common [space]" problem. We've been using them for a year or more now and I'll be sad to see them go. I hope they follow through on putting people in touch with the actual cleaners.

[deleted]

Re: Homejoy says goodbye

#48
post #16

I get the sense that many of the people involved in Homejoy are well-intentioned and hardworking. But I can't say that I think it's a bad thing that tech startups are finding it difficult to monetize unskilled labor. The technology that most companies like these offer (with the possible exception of Uber) is a commodity. The real asset they have is the network effect. Which makes the balance of power between the tech…

> What are these companies doing for the laborers that makes them valuable enough to be skimming returns from the work?

As someone who used to build/sell websites to small cleaning companies, real estate agents, tradesmen, etc.

Marketing+Parts+Labor was the formula for almost all of their costs. Marketing represented ~20-25% for the few that were willing to discuss it with me.

http://blog.sfgate.com/techchron/2014/07/22/homejoy-hikes-ho...

That is in line with what Homejoy was asking for [25%].

Homejoy providers had direct access to the customer base they interacted with and could siphon off those clients they built a relationship with relatively easily. I know that is what I did once I found one I liked.

Re: Homejoy says goodbye

#50
post #7

I used Homejoy and I liked it's ease of use. But after the cleaning lady they sent me was done, she offered me her direct phone # and told me I could contact her directly for any future cleaning needs. I always wondered how this business model was going to work if Homejoy's contractors could just give out their phone # at the end of their first service and the customer could just contact them directly for any future…

FWIW Thumbtack and many other companies have the same problem, and it can be solved by just charging the cleaners more money for the initial introduction. Instead of charging 20% of the first cleaning, charge 50% or 100% or 200% and let them own the customer (Thumbtack charges fixed amounts but it is the same principle).
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