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The risk here is that many of the comments are extrapolating to the larger market. Yet Handy seems to be doing well and has much higher retention rates. Homejoy
by jusben1369 11y ago
The risk here is that many of the comments are extrapolating to the larger market. Yet Handy seems to be doing well and has much higher retention rates. Homejoy could just be bad management. Seems like a classic case of a leader who was good early on (rushing off to do a bathroom on a holiday) but couldn't solve for the bigger problems at scale (retention) which Handy has.
- mason55 11y agoRight, I think there is plenty of space for value-add in this market, it's just that Homejoy wasn't doing it. They thought they could act an uninterested intermediary whose focus was on scheduling and on demand cleaning but that's not where the gaps are in this market. It seems like there is a ton of room for them to leverage their economy of scale and that provides the moat that keeps cleaners from striking out on their own. Some easy things I can think of where it makes sense for both cleaners & customers to stay with Homejoy From the cleaner side: - Offer help with the business side of things for the cleaners (taxes, setting up retirement accounts, etc) - Instead of giving cleaners supplies, raise the rates you pay and sell supplies to the cleaners at a discount by leveraging your economy of scale - Group negotiation for health insurance From the customer side: - Give customers a reason to continue ordering through the app. Maybe it's randomly giving away free cleanings, maybe it's a frequent buyer discount, maybe you offer monthly/yearly subscriptions - Mentioned elsewhere but have a way to request the same person