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Havish Gupta
Figuring OutĀ ā¢Ā 3m
Why did 'Uber for Home Cleaning' Fail? So, this is Homejoy, a San Francisco based startup founded by Adora and Aaron Cheung in 2010. It was an online platform which connected customers with home service providers. They received their first investment from Y Combinator in March 2010 and then began their operations in 2012. In Beginning, Adora Cheung herself did the first few cleaning jobs herself, untill they started to scale. Their growth led them to raise another $1.7 Million Round by AndHor and Resolute in 2013 And after this, they raised a series A round in Oct, 2013 and a series B Round by Google in December. (That is 3 funding round in a single Year) Thus, Paul Graham said that Homejoy was the fastest growing Y Combinator company. Then, in 2014, they scaled to UK offering cleaning services at just $13 an hour (compares to upto $35 in the USA) But this growth was temporary, as they soon faced worker classification related lawsuits. And the lauwsuits along with high chunk rate Along and high costs led the company was permanently shut down in mid 2015 (raising total of $40 Mln) Then, after the company Anyways, just 3 months later Adora started another company called Fly Maids using HomeJoy's customer page. But she had to shut that down too after an Homejoy user found his credit card details and his profile on the FlyMaids' website even without signing up. (She did that to avoid lawsuits and controversy)
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