#Fail:Homejoy

Adopt a Startup
Aug 24, 2017 · 2 min read

Homejoy 2012–2015
California — USA
Founders — Adora Cheung and Aaron Cheung
Raised US$ 39.7

Homejoy was an online platform that connected professional cleaners with clients for $20/hour.

Main Reasons for Failure

Customer Acquisition & Retention: High cost of customer acquisition and only around 25% of the customers continued to use the service after the first month.
Expansion: Homejoy expanded quickly and had a costly international expansion. Also, some cities used more than others that led to a lack city-service fit.
Law: Workers classification lawsuit

Adora & Aaron Cheung

Nowadays
Adora Cheung is a partner at Y Combinator, an American seed accelerator. Y Combinator is considered to be one of the best Accelerator in the world.

Aaron Cheung co-founded HomeGlow, the easiest way to find and book your perfect cleaner.

Sources: Wired , Robgo

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