Home-Services Startup HomeJoy Files for Bankruptcy

Home / Home-Services Startup HomeJoy Files for Bankruptcy

HomeJoy is a startup company providing home cleaning and repair services. It was founded by siblings Adora and Aaron Cheung in 2013 and now operates in five countries. Originally the organization was funded by investors like Google ventures and First Round Capital.Recent reports indicate that HomeJoy has filed for bankruptcy under Chapter 11.These decisions were in response to several unresolved issues related to lawsuits.

Several suits threatening the company to reclassify contractors as employees would increase their labor cost by 20% to 30%. HomeJoy’s major competitor is Handy and speculations are that HomeJoy became bankrupt due to Handy being in competition.
Handy Home services was formerly known as Handybook. Their website lets you book cleaning services and related home maintenance. Handybook was founded in June 2011 by Oisin Hanrahan, Umang Dua, Weina Scott of Harvard University and Ignacio Leonhardt of Duke and London School of Economics.This service company operates in United States, United Kingdom and Canada.
Handy Home services provides home cleaning, office maintenance, interior painting, electcal installation as well as  plumbing and faucet maintenance. Additionally they offer packing, moving and lifting,garbage disposal, furniture assembly, and other labor assistance services.

Handy raised funds of 2 million in October from Highland Capital and  General Catalyst. With the expansion of company, Handybook raised another 10 million dollars from David Tisch and existing Investors in October 2013. November of the same year saw Handybook acquiring Exec to make its presence being felt in the west coast.

Handy has over 10,000 professionals working for them in around 28 cities in three countries. Their success has continued over the past few years as they celebrated their millionth booking in June of 2015. Handybook reportedly acquired Homejoy after thy had ceased operations in response to contractor lawsuits. Handybook received investments of 30 million in in B round in 2014.  They proceeded to acquire London Incumbent Mopp at an unknown evaluation. Rebranding of the Handybook Home services made way for Handy in the market sector and demonstrates the organization’s strength in promotions.