What’s “sharing economy”?
It can be described as an economic model in which goods and resources are shared by individuals and groups in a collaborative way such that physical assets become services. The sharing economy’s growth has been facilitated through advances in big data and online platforms…
The sharing economy is one of the most rapidly growing market phenomena in history. Since 2010, investors have contributed over $23 billion in venture capital funding to start-ups that are using a share-based business model. As many of the share-based firms are private, it is difficult to know the exact size of the sharing economy.
The sharing economy involves short-term peer-to-peer transactions to share use of idle assets and services or to facilitate collaboration. The sharing economy often involves some type of online platform that connects buyers and seller.
One of prominent examples of sharing economy platforms in the home services sector are TaskRabbit and Handy.
TaskRabbit: The On-Demand Convenience
TaskRabbit is an odd-job service that operates in over 61 U.S. cities and connects users, called Taskers, to paying gigs. Taskers set their own rates and may get tips. Popular jobs with higher earning potential include handyman-type tasks, moving and cleaning, according to the company.
To be eligible, you must be 18 or older, have a Social Security number, checking account, credit card and smartphone, and pass background and ID checks.
You need to use the Tasker mobile app to create an account and go through the verification process. You’ll have to provide basic information about yourself, upload a profile photo, set up direct deposit, set pay rates and state your level of experience for your task categories.
For each service you provide, you’ll also have to add a “quick pitch” detailing why people should pick your services (more on that later). To help you maintain positive reviews and ratings, TaskRabbit recommends limiting those services to ones you “can perform at a high-quality level.”
If TaskRabbit approves your application, you’ll be charged a nonrefundable $25 registration fee. And that’s the only bill you’ll foot as a Tasker. All other fees come from clients.
Handy: Expertise at Your Fingertips.
Have you been putting off a collection of household tasks you just can’t seem to get to? Handy’s easy-to-use platform can get them scheduled, paid for, and finished in no time—sometimes even the same day!!!
For smaller household tasks such as furniture assembly, cleaning, and TV mounting, Handy is an excellent platform. Its streamlined one-step process of booking a professional and getting a quote is convenient for those who need last-minute services, as well as for clients who are simply too busy to invest more time in researching who to hire for the job.
SPECS
- Service area: Select cities across the U.S.
- Services categories: Cleaning, furniture assembly, general handyman services, electrical, plumbing, moving, home improvement projects, and more
- Scheduling: Online, mobile app
- Cancellation policy: Free cancellation up until 24 hours before appointment; $25 fee for cancellation 2 to 24 hours before appointment; full cost for cancellations within 2 hours of appointment
PROS
- Simple and streamlined one-step booking process
- Vetted and screened professionals
- Special deals available through popular retailers such as Costco, Crate & Barrel, Wayfair, Walmart, and Mr. Clean
CONS
- Relatively short complaint-filing window of 72 hours after the service was provided
- Insurance information for hired individuals not readily available
- Reports of quotes being significantly lower than actual cost incurred.
The Sharing Economy Revolutionizing Home Services!
Overall Impact
TaskRabbit and Handy have revolutionized the home services industry by addressing several key challenges faced by traditional service providers:
- Accessibility: These platforms make it easier for customers to find and book services, eliminating the hassle of searching for and vetting individual providers.
- Convenience: Online booking, real-time tracking, and secure payment options provide a seamless user experience for customers.
- Reliability: TaskRabbit and Handy’s screening processes ensure that customers are matched with qualified and trustworthy professionals.
- Transparency: Clear pricing structures and customer reviews foster trust and confidence in the services offered.
As a result of these factors, TaskRabbit and Handy have significantly expanded the reach of home services, making them more accessible and appealing to a broader range of consumers. The sharing economy approach has also led to increased competition and innovation in the industry, driving improvements in service quality, customer satisfaction, and overall efficiency.
In conclusion, TaskRabbit and Handy have played a transformative role in the home services industry, offering customers greater convenience, reliability, and transparency. The sharing economy model has revolutionized the way people access and manage home services, paving the way for a more efficient and customer-centric industry.
Isn’t that great? Let me know what do you think about those business models in the comments 🙂
Sources:
https://g.co/bard/share/ed7f9410c995
https://corporatefinanceinstitute.com/resources/economics/sharing-economy/
https://www.investopedia.com/terms/s/sharing-economy.asp
https://www.nerdwallet.com/article/finance/getting-started-taskrabbit
https://www.bobvila.com/articles/handy-review/