This article is missing information about employee classification lawsuits.(July 2015)
|Adora Cheung (Co-founder & CEO)|
Aaron Cheung (Co-founder & VP of Growth)
Number of employees
Homejoy was an online platform which connected customers with home service providers, including house cleaners and handymen. The company was based in San Francisco. Homejoy served the United States, Canada, and United Kingdom for a total of over 31 major cities. It charged a variable rate of $25–$35 per hour (or £13 an hour in the UK).
The company raised another $1.7 million in seed funding in early 2013. The seed investors included Andreessen Horowitz, First Round Capital, Resolute.VC, and other individuals and groups. Since then, there have been two other rounds of fundraising conducted by Homejoy (Series A and Series B). Series A was conducted in October 2013, and the amount invested during this round has not been publicly disclosed. After Series B, led by Google Ventures, completed in early December 2013, the total raised from both rounds was around $38 million.
On July 17, 2015, Homejoy announced that it would cease operations on July 31, 2015. The company cited difficulties in maintaining profitability, as well as lawsuits over whether its workers are contractors or employees. Google hired portions of the company's technical staff.
Homejoy was run by a team of over 100 employees, and worked with thousands of independent professional cleaners in their cities of operation as of early 2014. They charged a uniform rate of $25 an hour for service. Cleanings were fully bonded, and cleaners contracting on the platform had to go through a screening process which involved third-party background checks and a certification process.
Homejoy’s company culture focused on the use of technology to increase operating efficiency and offer on-demand services. Investors have also credited Homejoy for creating jobs in a slow job market by connecting their service to the demand and expanding their scope beyond traditional house cleaning companies.
A former employee claimed there were other reasons Homejoy shut down besides the worker classification lawsuits, including a costly international expansion and the leakage of its best workers to direct employment arrangements with its own (now former) clients. Some questioned growth of the customers by giving a steep $19 deal for the first cleaning, where other companies charge $85.
In October 2015, three months after Homejoy shut down, Aaron Cheung, the Co-Founder of Homejoy bought and used the Homejoy customer database to start a similar company, Fly Maids. Cheung admitted that he was behind the startup after a Homejoy user found his credit card and profile information on the Fly Maid site — without even signing up. Cheung decided to shut down Fly Maids after the news became public to avoid another lawsuits due to seemingly improper usage of Homejoy customer database.
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