Taskrabbit is Changing its Business Model & Here's Why it is Doing So

Taskrabbit, a marketplace for home services which connects skilled people with those who want to get a task done has tweaked its business model. The changes have come into place as the home services giant wants to tap the ever growing on-demand economy. Taskrabbit has got a strong supply as well as demand side, but still there were gaps in the fulfillment procedure. With an aim to rectify all such gaps and serve its customers with a new experience, Taskrabbit has launched a new app which lets a task to be completed within 90 minutes. When we say 90 minutes, it means that everything from posting a job to acceptance of task from a skilled person and from payment to completing that task; happens within 90 minutes. Taskrabbit’s new app with this new business model is already available on iOS.

The changing Business Model of Taskrabbit

There’s no doubt that Taskrabbit is one of the major players in the home services sector and has got a huge share of this market. The supply side as well as customer side demand is going up day by day, but they expect a lot more. The way Uber treats its customers with instant gratification has made a huge impact on almost all industry segments. Taskrabbit has been quick enough to notice this shift and hence took a quick decision to make improvements in its business model. Here are some stats as mentioned by Taskrabbit which define the switch to new business model.

• About 85 percent of Taskrabbit customers make requests using mobile platforms.
• More consumers are seeking goods and services, available in real time
• TaskRabbit’s on-demand offerings are diverse and include home repair and deliveries. Sometimes these are required instantly.
• In general, mobile usage has tripled year-over-year.

Prior to Taskrabbit’s new business model rollout which caters to real time tasks, requests were confirmed by experienced taskers the same day, and completed in the near future. Generally it took one to three days to complete most tasks booked on Taskrabbit.

TaskRabbit has launched its new business model with the help of a new app in 19 cities of the US and London in the UK. The new app lets customers book a task in real-time and get it completed within 90 minutes. Under this model, taskers are assigned within 5 minutes.

Freelance workers set their own prices, and the company takes on average of 23 percent cut.

What made Taskrabbit introduce a realtime platform?

We’ll simply answer it as ‘Need of the Hour’. The on-demand economy is everywhere. It has created what we call the ripple effect and has affected almost all industry verticals. The founder of Taskrabbit was quoted saying in an interview “There was nothing called as on-demand economy when we started. But now, we have to go with it”. Some stats which motivated Taskrabbit to launch a real time platform include:

• Mobile traffic tripled in 2015.
• 77% jobs being posted on Taskrabbit get fulfilled within 5 minutes.
• Over 50% of jobs happen within 60 to 90 minutes and rest are scheduled.

The tasks in the new app range from services like home cleaning to moving help and anything that needs to be fulfilled immediately.

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