Homejoy fails but on-demand industry will SURVIVE with Google’s help

Homejoy has failed but that doesn’t say much about the on-demand industry as a whole. That is what many experts are saying about the analysis of a company, which announced officially that they would be ending their service at the end of the month. Homejoy was a company that had pounced in the on-demand home industries. Home automation is a major business here in the United States and its market is definitely on the upswing. However, Homejoy worked to capitalize on a market, which utilized home services specifically.

We have seen it happen a thousand times, but lawsuits are obviously crippling for a company. Especially one that doesn’t have the stash of money that some of the larger players in the tech market do. We’re not talking about Apple or Samsung. Instead, we’re talking about a company like Homejoy, being forced to accept standards of income within an industry that didn’t meet expectation. Homejoy did cleanings and would take care of other household tasks, but found that lawsuits would be the end of them.


Many of their employees were independent contractors, and many began complaining about the quality of the terms, which they were employed by. Now, lawsuits are flying – and they forced the company to shut down. This shuttering of its business is significant for the company, obviously, because it shows just how poorly the company was run and managed. It shows how unhappy their employees were, and just how many disputes can form from contract-based work.


However, it doesn’t say a lot about the on-demand industry. Especially when it comes to home services, like cleaning, reductions, and more. This is a service that would definitely find its market, if the company actually wanted to capture the market with real employees. As the company pointed out though, utilizing contract-based employees, instead of regular full-time employees, gave the company the added benefit and reduced cost of doing business.

This is all significant because it speaks to how much change is coming. Companies like Amazon, Google, and others have entered the market – the services market that is – and it’s important to note that there would be a significant demand for such a market – if it were executed properly. As Homejoy calls it quits at the end of the month, it will be a dawn of change for those looking to get their house cleaned for a price. The demand though is anything but gone, and that is significant for a number of reasons.