The home-startup company has raised new funds for development. Homejoy, the startup that lets home-owners book cleaning services online, has showdown following their lack of enough capital to run the business. The company was sued for classifying their cleaners as contractors. Homejoy, the startup, was the first startup company to get off from business in this industry.
Homejoy main rival, Handy, said that it had raised over $50 million in new funding from existing investors including Fidelity TPGG Growth, Revolution Growth, Highland Capital, and General Catalyst. The company intends to use the funds to expand to over 28 cities in the country. The company also wants to expand its territories to countries like Canada and the United Kingdom. Oisin Hanrahan, the CEO and co-founder of the enterprise, says that they will double their income over the next three months.
Handy.com also known as Handybook, came into the business in 2012 to provide an avenue for homeowners to book their home-cleaning activities online. They intended to offer the best cleaning experience to customers at the lowest price possible. Handy hires and vets cleaners and handymen. While their clients use their mobile application to schedule their cleaning activities, they dispatch them according to their skills. In 2014, the company acquired Exec. The San Francisco-based company (see, https://www.handy.com/cleaning-services/new-york) would be used to expand their services to West Coast. As a matter of fact, the company is facing stiff competition from other enterprises including Amazon.
There are many questions raised about the start-up’s viability. They provide everything from hot meal deliveries to car rides. For as long as the company has existed, they have been around. While expanding their services, the company wants to expand at high speed. They want to meet their customer’s expectations and grab the market shares. While attracting customers, they need to maintain the affordable price. They need to gain customer trust with their homes.
While other companies want to expand successfully like Uber, they continue to raise money to expand their business coverage. Other companies have held up their categories to gain more trust among customers. According to Medium-backed, Homejoy accrued its failure from the lawsuits against them. The company had slow execution capabilities and lack of enough capital. They had difficulties in retaining customers due to poor service delivery. Handy has more than 80 percent of their bookings come from their existing clients. For this reason, Handy has a powerful customer retention capability.