Homejoy
| Company type | Private |
|---|---|
| Industry | Home services, Cleaning services |
| Founded | 2010 |
| Founder | Adora Cheung, Aaron Cheung |
| Defunct | July 31, 2015 |
| Headquarters | San Francisco , United States |
Area served | United States, Canada, United Kingdom |
Key people | Adora Cheung (CEO), Aaron Cheung (VP of Growth) |
Number of employees | 100+ (2014) |
Homejoy, Inc. functioned as a digital platform that linked clients with home service professionals, including cleaners and handymen. Headquartered in San Francisco, it operated in more than 31 major metropolitan areas throughout the United States, Canada, and the United Kingdom, with pricing ranging from $25 to $35 per hour (or £13 in the UK). The company discontinued its services on July 31, 2015.
History
Established in 2010 by siblings Adora (CEO) and Aaron Cheung (VP of Growth), the enterprise was originally named Pathjoy. In its early days, Adora Cheung personally undertook cleaning assignments and maintained a practice of completing at least one cleaning job monthly until late 2013.
Following an undisclosed investment from Y Combinator in March 2010, Homejoy officially launched in 2012. Paul Graham recognized it as the fastest-growing company within Y Combinator’s portfolio. Early in 2013, the startup secured $1.7 million in seed capital from investors such as Andreessen Horowitz, First Round Capital, and Resolute.VC. This was followed by Series A and B funding rounds, with the latter led by Google Ventures in December 2013, accumulating total investments near $38 million.
In April 2014, Homejoy entered the UK market, setting prices at £13 per hour while paying cleaners between £7 and £9.5 per hour.
On July 17, 2015, Homejoy announced its closure due to difficulties achieving profitability and ongoing litigation related to worker classification. After shutting down, Google recruited portions of Homejoy’s technical staff to aid in building its own home services platform.
Operations
By early 2014, Homejoy employed over 100 staff members and collaborated with thousands of independent cleaning professionals across its operational cities. The company maintained a standardized rate of $25 per hour for services rendered. All cleanings were fully bonded, with cleaners subjected to a vetting process that included third-party background screening and certification verification.
The platform prioritized technological solutions to streamline operations and provide on-demand cleaning appointments. Investors praised Homejoy for creating employment opportunities during a sluggish market by efficiently matching service demand with supply and expanding beyond conventional cleaning businesses.
Homejoy Foundation
In December 2013, Homejoy established the Homejoy Foundation, a charitable organization dedicated to supporting programs for veterans and their families.
Controversies
According to a former employee, factors contributing to Homejoy’s shutdown extended beyond worker classification lawsuits; these included expensive international expansion efforts and losing key workers who were hired directly by former clients. Critics also pointed to Homejoy’s aggressive customer acquisition tactics, such as offering introductory cleanings for $19 compared to competitors’ rates near $85.
In October 2015, three months after Homejoy ceased operations, co-founder Aaron Cheung launched Fly Maids using Homejoy’s customer information. Cheung admitted involvement after a user discovered their Homejoy data appearing on Fly Maids without registration. To prevent legal complications regarding database use, Cheung promptly discontinued Fly Maids.