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This matches part of the description of HomeJoy's failure[1]. Home service are relationship based so a middle man is only Uber-like for the first cleaning. Afte
by cheriot 10y ago
This matches part of the description of HomeJoy's failure[1]. Home service are relationship based so a middle man is only Uber-like for the first cleaning. After that the cut has to be smaller or the customer and pro will deal directly. Even that doesn't quite capture the additional complexity in matching pros with customers. The work is more qualitative and the pro needs jobs that are more similar in location, expectation and needed supplies. Homejoy was too much like uber to work.
Yes, they ran out of cash because CAC > LTV, but that's a bit like saying an AIDs patient died of the flu. There's an underlying cause.
[1] https://backchannel.com/why-homejoy-failed-bb0ab39d901a https://backchannel.com/why-homejoy-failed-bb0ab39d901a