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ADP Sues Zenefits for Defamation

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Re: ADP Sues Zenefits for Defamation

#2
I feel like Zenefits is becoming a case study in everything you don't do when you enter an industry. We'll be switching away because I'm worried who else they won't play nice with in the future.

Uber and AirBNB have scared the heck out of huge incumbent industries and cities/governments and had scraps to be sure. But they don't have the consistent missteps as Zenefits. They know when to fight and when to take a lump or two, stay quiet, and bide their time.

Re: ADP Sues Zenefits for Defamation

#3
This won't end well for Zenefits. Its not quite a deathknell for them, but there is zero case where Zenefits doesn't settle outside of court or loses the case. They will need to spend time/resources to raise another round and fight the chance that ADP doesn't build a competitor them in the mean time. This is the kind of momentum shifter that kills startups.

Re: ADP Sues Zenefits for Defamation

#4
The descent into lawsuits is pretty sad. When customers hate your product (i.e. the ADP front-end) so much that an entire company forms around making something less terrible, you really have to look at yourself in the mirror.

I continue to be amazed by the horribleness of benefits web front-ends. I recently did a simple task in our Hewitt system, and it required five pop-up windows. It's just so, so terrible.

Re: ADP Sues Zenefits for Defamation

#5
post #4

The descent into lawsuits is pretty sad. When customers hate your product (i.e. the ADP front-end) so much that an entire company forms around making something less terrible, you really have to look at yourself in the mirror. I continue to be amazed by the horribleness of benefits web front-ends. I recently did a simple task in our Hewitt system, and it required five pop-up windows. It's just so, so terrible.

It seems to me that being in business for 65+ years and being the undisputed market leader in an industry and then having an incredibly well funded software company with hundreds of employees siphon off only 600 of your customers isn't necessarily a moment for self reflection.

I've used ADP myself as a startup founder. Yeah the interface is annoying. So is Craigslist, whatever. That line of argument isn't necessarily dispositive, both of them have been reasonably adept at solving the problem I engaged with them to solve.

Re: ADP Sues Zenefits for Defamation

#7
If Zenefits isn't happy that they can't access ADP's payroll info on behalf of their customers then why doesn't Zenefits spin off a payroll service and attack ADP from that angle? Maybe Zenefits could name it ZenPayroll. Oh wait...

Re: ADP Sues Zenefits for Defamation

#8
post #3

This won't end well for Zenefits. Its not quite a deathknell for them, but there is zero case where Zenefits doesn't settle outside of court or loses the case. They will need to spend time/resources to raise another round and fight the chance that ADP doesn't build a competitor them in the mean time. This is the kind of momentum shifter that kills startups.

ADP will lose this lawsuit very quickly
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