Chris Holden

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How Homejoy, Inc Suffered A Bankruptcy And How Handy Is Maintaining The Best Quality Service In House Cleaning Services

by Chris Holden - January 21st, 2016.
Filed under: Apps, Uncategorized.

Homejoy, Inc is a housing and repairs startup company that has in the recent past filed for Chapter 11 bankruptcy. The filing in the U.S Bankruptcy Court came after about five months since the company announced through its website’s blog post that it would be closing business. The company was started by siblings Aaron and Adora in 2013, and it allowed home owners to book house repair and cleaning services.

In the initial stages, the company was able to raise not less than $38 million in venture funding capital from investors like Redpoint Ventures, Google Investors as well as First Round Capital. Until July 2015, the company was able to offer $25 an hour house cleaning services to clients in five different countries. Citing reasons for closing business as different unresolved challenges in the house cleaning space, the founders also blamed worker classification lawsuits it had received as also having a big contribution on the same.Homejoy is not the only startup company that has faced similar challenges. Most of the companies are plagued with lawsuits that demand that they reconstruct their contractors as employees that would mean that the labor costs would be driven up to 40% therefore being forced to close business.

Despite Homejoy suffering a bankruptcy, its main competitor Handy Technologies has been able to enjoy all benefits that having a unique service comes accompanied with. In November last year, the company was able to raise not less than $50 million in venture funding from different investors like Highland Capital Partners, Fidelity Management and others. Combined, the company has been able to receive not less than $110 million in funding so far.

Handy is classified by many as the Uber of house cleaning only different in the sense that it does not come accompanied by high fees. Using a mobile phone application, the company allows home owners to book, pay and even tip for house cleaning and repair services.

The company has experienced the growth because it offers very unique services that are of good quality and that are easy to find. On top of that, it has very reliable contractors who are at all times willing to put the extra effort so as to deliver good quality service.

Read the full article here.

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