Home Service Startup Files Bankruptcy In Less Than 3 Years
Startup companies came as a packaged deal with the tech boom in the last decade but the chance of them surviving over five years has dwindled. These innovative ideas that grow into startups have been meeting their end because of class action lawsuits that push to redefine their contractors as employees, which in turn drives up labor cost. The home repair startup Homejoy Inc has recently filed for bankruptcy a mere five months after posting on their blog that they would be shutting down their services.
However this is not the case for all startup companies, some have flourished despite the low success rate of these newer and smaller companies. Handy Technologies which is a startup that provides similar services as Homejoy, was able to raise $50 million in funding back in November and has continued to expand their services. In total, the company has raised over $110 million in investment capital for their continued expansion. Not only does Handy offer highly recommended cleaning and home repair services they now can send someone to your home to assemble your newly bought Ikea furniture.
Handy was created after the Uber craze had exploded across the United States. Their general goal was to become the ‘Uber of the home repair world’ by offering a simple and easy way to find a home service worker or company. By creating an extensive employment process Handy only hires 3% of those interviewed and performs in-depth background checks. Currently they’re working on expanding to all major cities in the US and have opened up an office in London.