Article Recap: HomeJoy&Handy

While Homejoy was preparing to bites the dust, Handy was preparing for a third birthday party to celebrate it recent triumph. Handy had a good reason to celebrate, its mobile app that connect consumer with highly screened professions and also enables user to hire, rate home cleaners, and pay had just surpassed its 1 million booking. Homejoy was closing after struggling to raise enough funding.

Though, the company was still facing revenue and growth challenges, its CEO Adora Cheung stated that the deciding factor was lawsuits fight over whether its workers should be classified as contractors or employees. However, from an interview with Backchannel source, some employers gave more complicated story and what was emerging was that law suits were not the proximate reason for the company demise. Handy demonstrates operations reflect value for its producer base. It worth noting that workers create value for production platform they are the one doing actual house cleaning that thus enabling money to transaction in the business. Understanding their need ensure that they are representing the brand.
Handy’s strategy is to continuously raise the bar and surpass it consumer expectations, though this pressures the competition. Handy has been creating new type of value for its consumer, subsequently; it affects its growth and retention. As a result, Handy competitors are not able to keep up. Unlike Homejoy, Handy has done much better in driving repeated business. According to Forbes only about 15% to 20 % of Homejoy customers booked more than once in month. On the other hand, more than 35% of Handy customers booked again for the services in a month. Despite much competitive analysis, understanding and making client satisfied and happy is the greatest return on investment for any business all the time.
Finding ways to improve network is fundamental to any venture success, Handy understands that the more customers it gets in its platform, the cleaner are needed. To achieve this network effect call for balance act, thus it is important to have viable data to answer important question such as the number of cleaning per unit time and how that percentage can be improved. It is crucial to note that, vanity growth such as revenues growth does not always reflect health of a business. That may be another reason as to why Homejoy was falling behind its competitor.
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