in July this year, HomeJoy founder in the company’s official blog announced that due to the failure of financing, the company is about to stop operating. This is a very sudden news. The company is headquartered in San Francisco, officially began operations in July 2012, the end of July 2015 closed three years, experienced change radically.
Uber connects people who need transportation services and those who provide such services, HomeJoy is also very similar, it helps connect people who need housekeeping services and cleaners. There are a number of similar companies in china. For these companies, HomeJoy is a good learning and reference samples.
as the field of domestic star company, HomeJoy has a lot of standard of a successful company: this project was born in Silicon Valley’s most famous incubator Y Combinatior, Google Ventures and major investors include PayPal co-founder Max Levchin, the total financing amounted to $40 million.
but under the aura of the stars, HomeJoy has long been a variety of problems. It can even be said that a company in the O2O field can make mistakes that have emerged in the company, some of which are industry issues, some of which are problems of management and operation of the company.
Do in-depth analysis of the
media platform Medium’s project BackChannel of the company’s failure, the author Christina Farr interviewed a number of HomeJoy employees, she believes that the legal barriers are not the company’s failure (HomeJoy and Uber have similar problems, namely whether the cleaners are company employees) lead to the failure of financing, but serious operational problems caused investors to lose confidence.
HomeJoy made a lot of mistakes can be attributed to excessive emphasis on user growth. Growth driven by growth in the number of users is a method used by many companies, which may make the company into a long-term loss. Many companies are able to withstand long-term losses, because after this can see earnings expectations. But the profitability of HomeJoy looks elusive. Specifically, it made the following 10 Mistakes:
1, its user growth is very unhealthy: access to high user costs, but the user retention rate is low. HomeJoy often do in the promotion of group purchase website, it can attract many new users, but every single company for all losses, and these users are often cheaper, but not the real home need to regularly clean, so the retention rate is very low. BackChannel is the data show, HomeJoy monthly user retention rate of 25%, half of the user retained at 10%.
2, HomeJoy crazy to do the original discount promotion