Handy.com is one of the most popular online marketplace for home cleaning and other household services in the USA, U.K, and Canada. It is a startup which was founded by Oisin Hanrahan and Umang Dua in 2012. The aim of this startup was to develop a common marketplace between the households and the home cleaning professionals so that people can get reliable services from verified professionals as well as create job opportunities for people. Within a few years, Handy has reached the apex of success. However, now the time has come for Handy to rethink their business model and approach to sustaining in the market.
With their innovative idea and quality standards, Handy was an instant success. They have managed to secure millions of dollars in seed funding that includes $50 million Series C venture capital funding in 2015. They have managed to expand their operation in 28 states in the USA and employs more than 160 employees and 10,000 enlisted contractors. In March 2015, they also managed to complete their 1 millionth successful contracts.
While everything was going so smooth for Handy in its initial run with an aggressive expansion model, things started to fiddle when Handy was doing really great. At this point, both Oisin and Umang, the co-founders of Handy realized that their growth is not only good but way beyond their current capacity. They were finding it really difficult to ensure their high-quality standards with the rising demand.
As a result, their customer complaint was increasing, and the call center was unable to resolve them on time. Some their innovation such as online onboarding also misfired. The rising operating cost was also a concern for this company. Hence, Handy had to take a drastic decision to change its business model. Now the company is thinking about organic growth and going to focus only on its existing market with its existing capacity. Also, they are also focusing on improving their business processes such as outsourcing customer supports, redesigning their onboarding and IT. For handy, it is more important to survive and sustain in the market that is aggressively pursuing clients whom they can’t cater to.