That's likely true -- the liabilities and legal costs associated with the suits were no joke. Homejoy CEO Adora Cheung announced earlier this week that the “deciding factor” in the demise of the business was the four lawsuits 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 didn’t work, former employees and industry sources said. The company had been trying for years to expand into new markets like China and India, but those efforts failed because customers weren’t willing to pay a premium price for home-based services, said one person familiar with
Homejoy CEO Adora Cheung announced earlier this week that the “deciding factor” in the demise of the business was the four lawsuits 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 didn’t work, former employees and industry sources said. The company had been trying for years to expand into new markets like China and India, but those efforts failed because customers weren’t willing to pay a premium price for home-based services, said one person familiar with