On-Demand home services sector is one of the most rapidly growing industry vertical in the on demand economy. Home services industry has been valued at a whopping amount of $400 Billion by Angie’s List, the website which reviews & rates local businesses. Others who are into the home service domain, put it at a valuation of more than $800 Billion. Whatever valuation you consider between $400 to $800 Billion, you’ll have to admit that this is huge.
If we compare home services with taxi industry, the first might have a higher potential in the long run. This can be said as a person might not need an Uber because he drives his own car. Even when he is travelling to some other city, he may have friends or relatives there which again suppress the need of a cab. But in case of home services, one will definitely require skilled people to accomplish various tasks. The average homeownership rate in the USA is around 65% and everyone will require one or the other home service at a given point of time. This fact has motivated venture capitals to pledge huge investments in the on demand home services industry. We’ll study about these investment trends at a later stage in this blog. First, let’s figure out what exactly constitutes home services.
In this Article-
- What Constitutes the On-Demand Home Services Industry?
- Major Players in the Home Services Sector with Funding Trends
- Why Home Services Marketplace Will be the Next Big Thing?
- Future Scope of On-Demand Home Services Industry
What Constitutes the On-Demand Home Services Industry?
The term ‘home services’ has an unexpectedly wide range. Home services sector is not limited to small tasks like that of a plumber or an electrician. But, everything – from house flooring or roofing to remodelling a kitchen and from painting walls to gardening is a part of home services. It can be said that anything that needs manual labour in terms of work at your house, comes under the home service umbrella.
There is a huge requirement of online platforms and marketplaces which can act as a bridge between skilled workers and people who require various tasks to be done at their home.
Although, there are some good startups in the home services industry which are doing great in terms of traction, but this massive sector is not saturated. Not even a single player has come up as a winner in this segment and we guess that there’s a long way to be covered. A lot of startups are launching home service marketplaces in order to get a share out of this $400 Billion market. Check out the following startups in the home services industry from across the world.
Major Players in the Home Services Sector with Funding Trends
Founded in 2008.
Received total funding of $37.68 Million.
Founded in 2012.
Received total funding of $110.7 Million.
Founded in 2008.
Received total funding of $698.2 Million.
Founded in 2014.
Received total funding of $30.20 Million.
- Urban Company
Founded in 2014.
Received total funding of $445.9 Million.
Most of these companies do not fulfil a customer’s request instantly as home services was much on the schedule side rather than being on the on-demand side. However, with changing consumer behaviour, it has become essential for a startup in the home services industry to offer its services on-demand.
Why Home Services Marketplace Will be the Next Big Thing?
Home services is yet another vertical that has been impacted by Uber and hence the term on demand home services came into existence. The instant gratification being offered by Uber has created an underlying assumption in the minds of customers that they want to get a service as quickly as possible. This instant gratification & awesome customer experience has been a major growth hack for Uber. The same has been implemented in various verticals and now is being included in the home services industry.
Taskrabbit has recently changed its business model as it has started to offer on-demand services. According to its new business plan Taskrabbit promises your task to be completed within 90 minutes of making a request.
Future Scope of On-Demand Home Services Industry
Home Services Industry has an amazingly bright future. Looking at the number of housing units across the globe and the ever increasing population, home services industry has got a potential that no other industry vertical can match. People are always struggling to find skilled people to get small tasks done at their home, which is not confined to any particular geographical area. Be it the western part of world including USA, Canada or the eastern part comprising Australia, Russia, China,etc. Home services would be required everywhere and that too on demand.
And that is why Yelo is here for you. Yelo is a pre-managed hyperlocal marketplace development platform that gives you access to ready-to-use elements for creating your on-demand home servive marketplace.
In technical terms, we will call Yelo a Software-as-a-Service (SaaS) system that allows users to create a new product using the SaaS’s abilities and features without writing even a single line of code, designing, and testing.
Don’t let this opportunity pass you by! Once you have insights and inspiration to share with other entrepreneurs, share this article with them.
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