[Baghard]

I firmly believe this business model can work. I know of a local business that is going into its 6th year of operations. Cleaning houses is a large part of their revenues. They match house cleaners, handymen, grocery shoppers, cooks and assistants with professionals starved for time. The model is subscription-based and they have some large companies which give out these subscriptions as a bonus/perk to their employees.

Perhaps Homejoy expanded too fast? They overdosed on funding? Deadlines and progress meetings became too dreadful? Or maybe there are regulatory issues they could not resolve?

I think there is more to this than a shoddy business model imitating Pets.com.

[callmeed]

You are comparing apples to potatoes. Every city has cleaning and janitorial service companies (I worked for one in high school). Obviously that model works. We pay our housekeeper $60/week and she's amazing.

What doesn't work is selling a service–cleaning or otherwise–for $20 when you have to pay the contractor $50 and a CAC of $12 (spitballing BTW).

At least Groupon shared the deal price with the restaurant and had some built-in virality.

At least Uber doesn't have to deal with drivers trying to end-around the marketplace and go directly at customers.

[FireBeyond]

"What doesn't work is selling a service–cleaning or otherwise–for $20 when you have to pay the contractor $50 and a CAC of $12 (spitballing BTW)."

I know you were spitballing, but the one time I looked at Homejoy, it most definitely wasn't on the cheaper side of the coin, quite the opposite.

Anyone care to give numbers?