Homejoy CEO Adora Cheung said earlier this year that the “ deciding factor ” in the demise of the business was the four complaints it faced from cleaners who claimed they were misclassified as independent contractors . But it now seems there ’s more to Homejoy ’s demise : its customer acquisition model simply did n’t work , former employees and industry sources said . Companies on this business model who want to sell a consistent product have their hands tied. “ Retention was clearly bad , and that was what killed us , ” said a former employee , adding that only about 15 % to 20 % of customers booked again within a year .
Homejoy CEO Adora Cheung said earlier this year that the “ deciding factor ” in the demise of the business was the four complaints it faced from cleaners who claimed they were misclassified as independent contractors . But it now seems there ’s more to Homejoy ’s demise : its customer acquisition model simply did n’t work , former employees and industry sources said . “ Retention was clearly bad , and that was what killed us , ” said a former employee , adding that only about 15 % to 20 % of customers booked again within a year .