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Why Homejoy Failed … And The Future Of The On-Demand Economy | TechCrunch
The fundamental “on-demand marketplace” model has come into question by investors, the media and even consumers. [...] However, because Homejoy acted as a platform “middle man,” taking a 25 percent cut of the transaction, the wage economics for pros did not make sense. Thus, this attracted young, inexperienced and low-quality pro labor (at times even homeless people), leading to inconsistent and lower-quality work. This mix doesn’t quite cut it for the average homeowner who wants a spotless home, thus leading to platform churn. [ low lifetime customer value that does not cover the cost of ops and customer acqusition ] It wasn’t all bad for homeowners. Homejoy did match some skilled pros with homeowners, driving them to form real business relationships. The issue was these relationships were typically taken “offline” (i.e., platform leakage). [...] Full-service on-demand platforms have been seeing success among more commoditized types of services.
Homejoy  on-demand  convenience  Share  Economy  1099  Economy  Service  Sector  Jobs  marketplace  commodity  business  commoditization  Niedriglohnsektor  burn  rate  runway  customer  acquisition  user  churn  middleman  repeat  business 
august 2015 by asterisk2a

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