Chapter 11 bankruptcy has been filed for the once hopeful startup HomeJoy. This announcement was delivered via blog post. The startup was founded by Aaron and Adora Cheung in 2013. It gave customers the option to have repairs and cleaning done in their homes by professionals on call.
After raising $38 million in venture funding, they had aspirations for expansion
and were planning to do so. But, this expansion was cut short due to “many unresolved challenges in the home services space.” This is a statement from the July blog post. One founder said that worker classification lawsuits are to blame for the mess. Reclassifying contractors as employees could raise cost 20 to 40 percent in some cases.
On the flip side of the spectrum we have Handy, formerly known as HandyBook. It is another venture startup cleaning and repair service, which has raised over $110 million to date. They are in the lead when it come to hiring pre-screened, qualified, independent professionals. They offer a wide range of services as well. They have professionals you can book for cleaning, moving the heavy things you don’t want to, home repairs and painting ti name a few. It is quickly becoming the go-to for on call services.
You know that vacation rental that you wish you never threw that party at? Handy pros will gladly come and tidy the place for a fee. Is that leaky faucet driving you bonkers? You can have them fix that too. It really is easier now than ever to get things done without all of the effort. If you (like most of us) are busy most of the time, this service could really come in handy. The open market left by the bankruptcy of HomeJoy could spell an even larger customer base for Handy.
If they can keep their momentum going, they’ll continue to expand and profit. Only time will tell if they will remain on top of their business model.
Click here for the full article.