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Forums Forums Q & A Cleaning Service Platform – How do they survive if the same cleaner comes in every time?

  • Cleaning Service Platform – How do they survive if the same cleaner comes in every time?

    updated 3 years, 1 month ago 0 Member · 1 Post
  • Christine

    September 1, 2019 at 6:48 pm

    In this awesome article about marketplace startups, Jonathan Golden talks about security and convenience as the two driving factors that reduce market breakage. He elaborates that when a long-term relationship is established between the customer and the supplier often the benefits of the service that matched them fade away and the two parties are tempted to move their relationship off-platform: For Lyft and Uber, it is easy to assume that trust is quickly developed between both sides and that a passenger could just call up a favorite driver and pay them in cash. They don’t, though, because calling a driver directly would inevitably take longer than allowing an app to select any driver for you. Uber and Lyft keep people on the platform by offering the convenience of shorter wait times and therefore a better experience. A cleaning service model, on the other hand, is more challenged due to the repeat nature of the interaction between the same party. Once trust is established through the platform, it is just as convenient to call the same cleaner directly the next time. After the marketplace creates an initial match, there is little reason for either side to stay on the platform. For that reason, these types of services work much better using a lead-gen model, where revenue is based on leads and not transactional. I don’t see how charging per lead is a good idea for an early-stage marketplace. I mean it seems impossible to accumulate the initial critical mass of suppliers that are needed to get the platform off the ground. So how do such ventures make it into maturity and keep both sides on board? – by hq overview TheMan1nTheBox – –

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