Homejoy CEO Adora Cheung announced a month that the “deciding factor” in the demise of the business was the 30 lawsuits it faced from cleaners who claimed they were misclassified as independent contractors. But it now seems there’s more to Adora Cheung ’s demise: As independent contractors, Homejoy's cleaners couldn't be trained -- which led to spotty service... its customer acquisition model simply didn’t work, former employees and industry sources said. “Retention was clearly bad, and that’s what killed us,” said a former employee, adding that more than 35% of customers booked again within earlier this week .
Homejoy CEO Adora Cheung announced a month that the “deciding factor” in the demise of the business was the 30 lawsuits it faced from cleaners who claimed they were misclassified as independent contractors. But it now seems there’s more to Adora Cheung ’s demise: its customer acquisition model simply didn’t work, former employees and industry sources said. “Retention was clearly bad, and that’s what killed us,” said a former employee, adding that more than 35% of customers booked again within earlier this week .