HomeJoy, a house cleaning and repairs service that seemed promising has filed for Chapter 11 bankruptcy, according to a Wall Street Journal Article. HomeJoy was started in 2013 by a brother and sister team, Adora and Aaron Cheung out of San Francisco. The concept was to allow consumers to book cleaning services through their website and app. The company raised millions in venture funding from big names like Google Venture and First Round Capital. They also hired David Hasselhoff for commercials.
One of the founders says that the bankruptcy might have been caused by worker classification lawsuits which would classify contractors as employees of the company raising the cost of operations. This is bad news for another company who offers a similar service, Handy, as well as other start-up companies in the home cleaning area.
Handy was started a year earlier in 2012 by Oisin Hanrahan and Umang Dua. It is mostly the brain child of Hanrahan who had trouble finding reliable help remodeling homes in Budapest. Handy was born to make it easier for everyone to find reliable professionals for jobs such as painting, repairs, furniture assembly and house cleaning. All the professionals on Handy are pre-screened for professionalism. Handy also offers a money back guarantee in which they will send out another professional for free if a customer is not satisfied with the first one. Customers can book cleanings and pay through the website or app. A new feature announced by Handy is the ability for customers to tip their professionals through the app as well.
Handy has raised more than $110 million in funding. They offer services in 35 different locations including major cities in the United States as well as Toronto and Vancouver in Canada and London in the United Kingdom. It is easy to sign up as a professional as well. Despite the difficulties of HomeJoy, Handy seems to have a promising future.
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