[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?