O2O originator of the United States domestic bankruptcy revelation rely solely on burning money can

leads: "Forbes" magazine network edition near journal article says, Homejoy, which is called "home O2O originator", has announced the shutdown service. The fall of Homejoy has brought a warning to all O2O startups: it is difficult to sustain high growth by burning money, and training employees to improve service quality is critical.

below is the full text of this article:

in the United States, the housekeeping firm’s 2.5 hour housekeeping service price is usually higher than $85. However, in order to attract more new users, O2O, the originator of housekeeping Homejoy, received only $19 in promotional prices. So what happens to Homejoy when the promotion phase is over,

?The answer to the

question is obvious: users never repeat their spending.

 

Homejoy co-founder

Homejoy co-founder CEO · and adola; Zhang (Adora Cheung) said that led to the closure of the service "the dominant factor" is on the platform of cleaner labor relations, namely the cleaners should be regarded as full-time employees or contract workers. That may be the case, and the litigation that raises the issue raises costly legal costs. But in fact, Homejoy’s fall is still more important. According to Homejoy’s former employees and industry sources, the company’s user acquisition model is not working.

, a former employee, said multi ·, Zhang and Homejoy focused on the rapid growth of the number of users, rather than how to retain the current user. Homejoy relies heavily on Groupon and other discount information sites to get new users. The company’s core services have been slow to improve because it failed to train its cleaners as independent contractors.

"Obviously, the retention rate is pretty bad," says a former

employee. That killed us."

The Homejoy user retention rates given by different sources of

vary widely, but without exception they are very bad. Some former employees say that only about 15% to 20% users repeat spending within a month. A news source close to Homejoy said the experiment in some markets raised the figure to 30% to 40%. In contrast, Homejoy’s rival, Handy, said more than 35% of users will be spending more in a month, and in some of the larger markets, that proportion will rise to 45%.

drew · Zhang and Homejoy declined to comment on the article.

Handy co-founder CEO · and ausin (Oisin Hanrahan); Graham Abraham said: "we are almost.

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