Homejoy Files For Bankrupy: Handy Sees Growth

After announcing via their blog that the company would be filing for bankruptcy, Homjoy has filed for Chapter 11. Their initial announcement was made five months earlier after speculation that classification lawsuits were becoming too much of a challenge for the already struggling company to handle.

The San Francisco-based company was focused on giving users a platform for booking cleaning and repair services for their home. Founded by siblings Adora and Aaron Cheung in 2013 the company started out by raising a promising $38 million from well-known investors. The company then quickly grew to offer its cleaning services in five countries, but its success did not last long due to encountering “challenges in the home services space”. In addition to these challenges the classification lawsuits challenged the company to reclassify contractors as employees. This new classification would have ultimately driven up the cost of labor as much as 40%.

While Homejoy struggled and eventually had to call it quits their competitor Handy was going strong. The startup raised $50 million in initial investing and eventually raised a total of $110 million from big-name investors. Handy was founded in 2012 by Oisin Hanrahan and Umang Dua. The two met at Harvard Business School after Hanrahan had studied and invested in real estate in Europe. While talking to Dua, Hanrahan learned that his experience of finding it difficult to find a reliable, quality handyman was not only an issue in Europe but also the United States. From that realization the idea for Handy was born.

Today Handy provides top quality professionals to their users for anything from handiwork to cleaning to IKEA furniture set up. The age-old problem of not being able to find reliable help has been solved. With either their computer or their phone users can schedule and book professionals. Each professional is prescreened so that users can be guaranteed that a trusted and effective professional will arrive at their door. Payments for services can be securely made online and are protected by a 100% moneyback guarantee.

With these services Handy has made a name for itself and in turn become a leader of its industry. No longer will people find it difficult to find reliable help.

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