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Why Homejoy failed: > "We didn’t figure out how to deliver a consistently high-quality service" The review sites agree and so does their churn rate. If you do
by tcdent 11y ago
Why Homejoy failed:
> "We didn’t figure out how to deliver a consistently high-quality service"
The review sites agree and so does their churn rate. If you don't have a high quality service, you don't have anything. Trying to hack growth numbers with Groupons and extreme discounts while ignoring retention numbers demonstrates a lack of respect for the dynamics (basic math) and suggests expectations of a 'silver bullet' to success.
Additionally, home cleaning has got to be one of the most subjective services you could choose. Who doesn't idealize an absolutely spotless home, but act very differently themselves when tasked with actually achieving it. "This shiny new Internet will solve my problems perfectly." Unfortunately, all you're really getting is an under-trained, underpaid human laborer.
- jakejake 11y agoIt seems to me that they focused really hard on the consumers, but perhaps it was the cleaners who were their true customers? Of course that becomes a niche business model which isn't that desirable for investors.