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 .
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. “Retention was clearly bad, and that’s what killed us,” said a former employee, adding that only about 15% to 20% of customers booked again within a month.