Homejoy, Inc. was an American online platform that connected customers with home service providers, including house cleaners and handymen. Headquartered in San Francisco, California, the company operated in more than 31 major cities across the United States, Canada, and the United Kingdom. It typically charged a variable rate of approximately US$25–$35 per hour (or £13 per hour in the UK). Homejoy ceased operations on July 31, 2015.
Founding and history
Homejoy was founded in 2010 by siblings Adora Cheung (CEO) and Aaron Cheung (Vice President of Growth). The company was originally named Pathjoy before being rebranded. It received an undisclosed amount of funding from Y Combinator in March 2010, but began operations in 2012. Y Combinator co-founder Paul Graham described Homejoy as one of the fastest-growing companies in the accelerator's portfolio.
The company raised approximately US$1.7 million in seed funding in early 2013 from investors reported to include Andreessen Horowitz, First Round Capital, and Resolute.VC, among others. A Series A round followed in October 2013, and a Series B round led by Google Ventures concluded in early December 2013. Combined, the two rounds raised roughly US$38 million. In April 2014, Homejoy expanded into the United Kingdom, its first market outside North America.
Operations
Homejoy employed a team of more than 100 people and worked with thousands of independent cleaning contractors. Cleaners on the platform underwent third-party background checks and a certification process, and cleanings were bonded. The company positioned itself as a technology company, emphasizing the use of software and algorithms to match customers with service providers and to schedule appointments efficiently. Some coverage framed it as an "Uber for house cleaning."
Shutdown
On July 17, 2015, Homejoy announced that it would cease operations on July 31, 2015. The company cited difficulty maintaining profitability and ongoing lawsuits concerning whether its workers should be classified as employees rather than independent contractors. Reports also noted failed acquisition talks with a competitor and difficulty raising a subsequent funding round. Google hired portions of the company's technical staff following the announcement.
Related developments
In October 2015, roughly three months after the shutdown, co-founder Aaron Cheung reportedly acquired and used the Homejoy customer database to launch a similar service called Fly Maids. After the connection became public—reportedly discovered when a Homejoy user found his profile and payment information on the Fly Maids site without having signed up—Cheung shut the venture down. Commentators also questioned Homejoy's customer-acquisition strategy, which included steep introductory discounts (such as a US$19 first cleaning) relative to typical market prices, and a former employee attributed the failure partly to costly international expansion and the departure of cleaners to direct arrangements with clients.
Homejoy is an established, well-documented subject with substantial coverage in reliable sources, including major technology and business publications.
