Exit Homejoy, enter Google!! That is what is happening right now.
Yesterday, Homejoy, founded in 2012, announced that it will be shuttering down its business officially on July 31st. Google was quick enough to take the opportunity and it appears that the online search giant is planning to enter the home service business soon. The company picked up about twenty employees from Homejoy. The home service business is a fast growing market and has immense potential in the competitive market.
Homejoy, was a startup which allowed people to find the suitable home cleaners for schedule house cleaning. It helped in pairing up contractors with people on the lookout for such services which included carpet cleaning services, handymen and repair people. The business faced tough competition from similar service providers like TaskRabbit, Handy and Amazon, which recently started providing home services.
However, the closure of Homejoy is related to a number of lawsuits where its contractors said that they should be treated as employees of the company and not as independent contractors. The company also failed to raise adequate funds for expansion.