3 ms·
As somebody with an interest in the space I appreciated the honest breakdown of the challenges and failures, 100% agree that this is a tough market. But this p
by aresant 9y ago
As somebody with an interest in the space I appreciated the honest breakdown of the challenges and failures, 100% agree that this is a tough market.
But this part stood out:
"We were charging clients 30–40% less than industry average, and we were paying caregivers 25% higher than industry average. Both sides were winning."
Both sides were winning at the expense of Homehero's investors and the viability of the business model.
It is damn easy to grab market share in nearly any price-sensitive marketplace by underpricing service or over-pricing HR but it will ALWAYS ALWAYS catch you.
And while the W2 math / wage wouldn't be completely solve by bringing pricing to parity, it certainly would have had a huge impact and maybe provided enough runway to drive the scale efficiency.