3 ms·

So after their last business failed, they shut it down, exported all the data out of it, started a new business, imported all the data, and are now operating sa

by sparky_ 11y ago

So after their last business failed, they shut it down, exported all the data out of it, started a new business, imported all the data, and are now operating sans all the original investors?

cglace 11y ago
I believe I read they bought the data.
- vonklaus 11y ago
  I said this above, but they are an information arbitrage company trading information that isn't valuable. How much value can you extract from a market for connecting people who need their homes cleaned with cleaners? Like not a lot.
  - escape_goat 11y ago
    They have the data from the review system, as at URL [1]. They can [they hope] create value by providing a reputation service that serves the interests of both customers and cleaners by allowing them to screen each other. They're not handling the actual transaction the way that AirBnB does, however, so I'm not sure what the specifics of the business model are. [1] https://www.homeaglow.com/crystalb https://www.homeaglow.com/crystalb
    - vonklaus 11y ago
      'Arbitrage' The simultaneous purchase and sale of an asset in order to profit from a difference in the price[0]. They take information that they purchased from their previous company, and also collect information presumably, and sell it. Their profit is based on the difference in that informations value to a different buyer. A service worker submits background info, how much they are willing to work for, logistics of what they'll do and other info. This is free for homejoy because that person wants to work and this will let them do that. They take that information and sell it to a buyer. The buyer pays: cost = [workers specified rate] + [ informations value] So homejoys profit is presumably something like the value of that information - opex as they likely have no assets. I am not saying there is anything wrong or unethical about this, just that there are no barriers to entry, high competition and high ability to substitute this for many things. This is sort of like the yelp model, except that yelp, despite some of the hits to its reputation, has a massive data set that is relatively complete and very difficult to replicate now in magnitude and completeness, it is also more broadly useful. While eating out is, to some extent, a luxury, people do need food. So more people, I would baselessly assert, eat out in some capacity on the monthly basis than have their home professionally cleaned. [0]http://www.investopedia.com/terms/a/arbitrage.asp http://www.investopedia.com/terms/a/arbitrage.asp
      - escape_goat 11y ago
        We both understand arbitrage to mean the same thing. Where we disagree is on whether or not this is the correct way to describe what homejoy is doing. I don't think that your model fits the actual facts of the transaction.

by sparky_ 11y ago

So after their last business failed, they shut it down, exported all the data out of it, started a new business, imported all the data, and are now operating sans all the original investors?

cglace 11y ago

I believe I read they bought the data.

vonklaus 11y ago
I said this above, but they are an information arbitrage company trading information that isn't valuable. How much value can you extract from a market for connecting people who need their homes cleaned with cleaners? Like not a lot.
- escape_goat 11y ago
  They have the data from the review system, as at URL [1]. They can [they hope] create value by providing a reputation service that serves the interests of both customers and cleaners by allowing them to screen each other. They're not handling the actual transaction the way that AirBnB does, however, so I'm not sure what the specifics of the business model are. [1] https://www.homeaglow.com/crystalb https://www.homeaglow.com/crystalb
  - vonklaus 11y ago
    'Arbitrage' The simultaneous purchase and sale of an asset in order to profit from a difference in the price[0]. They take information that they purchased from their previous company, and also collect information presumably, and sell it. Their profit is based on the difference in that informations value to a different buyer. A service worker submits background info, how much they are willing to work for, logistics of what they'll do and other info. This is free for homejoy because that person wants to work and this will let them do that. They take that information and sell it to a buyer. The buyer pays: cost = [workers specified rate] + [ informations value] So homejoys profit is presumably something like the value of that information - opex as they likely have no assets. I am not saying there is anything wrong or unethical about this, just that there are no barriers to entry, high competition and high ability to substitute this for many things. This is sort of like the yelp model, except that yelp, despite some of the hits to its reputation, has a massive data set that is relatively complete and very difficult to replicate now in magnitude and completeness, it is also more broadly useful. While eating out is, to some extent, a luxury, people do need food. So more people, I would baselessly assert, eat out in some capacity on the monthly basis than have their home professionally cleaned. [0]http://www.investopedia.com/terms/a/arbitrage.asp http://www.investopedia.com/terms/a/arbitrage.asp
    - escape_goat 11y ago
      We both understand arbitrage to mean the same thing. Where we disagree is on whether or not this is the correct way to describe what homejoy is doing. I don't think that your model fits the actual facts of the transaction.