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Homejoy says goodbye

blog.homejoy.com

141–150 of 410 posts

Re: Homejoy says goodbye

#141

what happened?

They got in trouble with lawsuits because of the recent Uber employee vs contractor verdict. In addition, they were bleeding cash in customer acquisition so that didn't help too. The lawsuit was the trigger but the bleeding of cash was the fundamental reason.

Re: Homejoy says goodbye

#142
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…

But the convenience increases the size of the market, benefiting both customers and laborers.

I never ordered from a cleaning service before Homejoy, and I doubt I'll bother with it after Homejoy. It's a useful service to me, but I'm not going to call half a dozen random guys on their cell phones to find one that will work for me.

Similarly, ride volumes are way up after Lyft and Uber come to town. Before, there is a lot of demand that is simply going unfilled.

Re: Homejoy says goodbye

#143
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…

A prediction about "sharing economy" companies. Almost all of them are tacking on a thin rind of web/mobile UI and smart dispatch technology to an existing service. The long-term winners will be companies like Flywheel that recognize this and focus on providing that service to existing operators, much like payment processors. This, of course, is perceived as a smaller market since they can't count revenue the same wa…

> The long-term winners will be companies like Flywheel that recognize this and focus on providing that service to existing operators, much like payment processors.

I don't think this creates a very big moat - that's essentially what Uber started out as (dispatch for private driving companies that already existed); they started letting anyone drive in order to meet demand.

If all the services are interchangable (and now, at least for ridesharing, it seems like they are), the winner will be the app that's used by default.

Re: Homejoy says goodbye

#145
post #30

Earlier quoted context omitted.

I feel this way about AirBnB as well.

I'd wager that most AirBnB stays are one-offs on vacation. Home cleaning is recurring, making it more vulnerable to the "here's my phone number" weakness.

Agreed, but also I want a business with a name worth protecting to be on the hook when I have a room booked, not just some homeowner.

Re: Homejoy says goodbye

#146
My problem with Homejoy/Handy etc. is the high degree of unpredictability in the quality of each cleaning. My conclusion is that for something like home cleaning, you want to find a regular person -- not someone new each week.

Our regular cleaner(which I found through nextdoor) recently had to quit. It was enough to upset me for a bit because finding a quality and consistent and affordable cleaner is very hard. Luckily I was able to find another promising cleaner from nextdoor.

When looking for a regular cleaner, one of the things I have learned is that you want a "career" cleaner. You don't want someone who is doing it as a past time to make some extra cash. That might work with Uber/driving but it doesn't seem to work with cleaning that well. If a non-serious Uber driver cancels the ride, you just call another one. If your cleaner doesn't show up, you can easily lose a day before finding a replacement(and hoping he/she delivers).

Re: Homejoy says goodbye

#147
Any type of business that based on being intermediary between buyer and seller run the risk of "losing" customers. This holds especially true with service business. I ran a nationwide lead generation service which basically matches POS/Payment processing companies with retail/restaurant business which was purely performance based. No initiation fee, no monthly fees to enroll with only 5% commission on the closed leads. And guess what; even if i sent the business tens of leads (averaging $7000 value with at least 40% profit) per month they resorted to either not pay or simply became incredibly sloppy on follow ups so i required to be in the loop. I may have not bring in any additional value to acquirer of the service, but for the service provider i was offering them a qualified business opportunity which they would not otherwise obtained.

Re: Homejoy says goodbye

#148
post #114
post #89

Earlier quoted context omitted.

I've had the exact same experience with Vint ( https://www.joinvint.com/ ) - Go through personal trainers until you find one you like and then move off the app. The hourly cost will be lower but the personal trainer will still make more money. I've also had Uber Black drivers give me their personal limo service business cards. The difference is that a cab is a commodity while a personal trainer is something that need…

It's not just that rides are a commodity, they also have an immediacy effect. I don't care who drives me, but I care that they pick me up in the next 3 or 4 minutes. When an uber driver gives me a card that's great, but it's kind of worthless because they're unlikely to be nearby. Hell in the time it takes me to call them I can likely have another car at my front door if I just use the app.

The only situation where it's nice to have a known driver is when you are scheduling a ride in advance, i.e. to the airport or something. In those cases, I frequently call a day ahead to a driver I know.

Re: Homejoy says goodbye

#150
post #139

"Unfortunately, we cannot process any refunds or credits at this time." Ouch. What would cause them to not be able to offer refunds?

I reckon running out of money -- money which is also needed to employ those who process the refunds.
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