Even ThinkApps isn\u2019t immune to the company\u2019s charms; back in November, we presented you with their \u201c3 Essentials for Scaling<\/a>.\u201d So what is it about this company that has everyone so intrigued?<\/p>\n Their method for growth and scaling is at least part of the answer. Founded in 2012 by brother-sister team Aaron and Adora Cheung,\u00a0Homejoy<\/a>\u2019s growth has been absolutely incredible. After focusing on San Francisco for the first six months, the company expanded to over 30 markets in North America in just 30 weeks. Then they moved on to the U.K., France, and finally Germany this summer.<\/p>\n But on December 16, Homejoy announced they were pausing their operations in Canada and France, a decision that caused quite a stir<\/a>. I spoke with Bastian Purrer, Homejoy\u2019s VP of Growth<\/a>, about the company\u2019s approach to scaling and what these pauses mean for the future.<\/p>\n Purrer points out that a service like Homejoy has unique challenges as it is part global tech company and part local service provider. \u201cWe have to be careful in order to create demand where our partners are located. The supply-demand balance in, for instance, Nob Hill, is very differently balanced than in the East Bay,\u201d he says. \u201cWe need to acquire customers and supply as locally as possible. Looking over 30 cities, that’s a big challenge, and keeping the quality up nevertheless.\u201d<\/p>\n But part of that is knowing where your customers are. So Homejoy developed the Demand Map<\/a>, software that tracks where current (and potential) customers live in relation to where their freelance cleaners live, giving the company a clear visual on how the market and supply are interacting and where there may be gaps.<\/p>\n As they\u2019ve grown, Homejoy has discovered some interesting tidbits about who signs up with them. Over half of Homejoy\u2019s customers have never tried professional cleaning services before, so the company is building an entirely new market.<\/p>\n And it isn\u2019t hard to imagine why this new group of customers is giving the service a try; Homejoy is constantly compared to services like Uber<\/a> and Seamless<\/a> \u2014 two other companies that are making huge strides toward removing the uncertainty and hassle from everyday life by making the process of ordering a car or a burger as simple, straightforward, and transparent as possible.<\/p>\n Homejoy has done this by tackling what makes people wary of professional cleaning services: letting strangers into your home, for one, and the potential for last-minute cancellations or no-shows, for another. They\u2019ve built safeguards into their system to prevent these problems: cleaners and clients can speak to each other over the phone (via the app) without disclosing their personal phone numbers, a piece of software that protects both parties.<\/p>\n And there\u2019s another perk to this new market: A growing demand necessitates growing the supply, which in turn means more work in the local economy. \u201cWe think it is meaningful that we can create work opportunities for thousands of independent contractors to build their business,\u201d says Purrer.<\/p>\n Purrer points out that while operations might demand an on-the-ground approach to both sides, digital marketing doesn\u2019t need physical presence to be extremely targeted. He advises new startups to keep online marketing and IT centralized.<\/p>\n \u201cFrom my experience, the differences between countries do not justify doing digital marketing on the ground. Try to keep those channels as local, as centralized as possible, while focusing local teams on street marketing and other offline channels,” he says. “Often times, in different countries the same advertising works well. The same campaigns work well. Everything digital is very scalable and learnings can be rolled out faster within one centralized team.”<\/p>\n Now they\u2019re expanding beyond cleaning. Homejoy is starting to offer other types of help<\/a> around the house including handyman services, furniture assembly, and air conditioner installation (or repair) in limited parts of the Bay Area. \u201cWe have a startup within the startup, which is replicating what we did with home cleaning,\u201d says Purrer.<\/p>\n Creating this sort of Russian doll<\/a> scenario may seem like a bit of a high-wire act, but Purrer says that in many cases the new services don\u2019t demand many differences in the way customers and the providers interact with Homejoy and each other. \u201cFrom a growth perspective, it’s relatively similar. The competition is similar, you\u2019re still balancing the local market and global business,\u201d he explains.<\/p>\n But there are advantages, too. \u201cCustomers of the cleaning services are more than ready to try other services,” says Purrer. “They already trust us with everything around their home. In a lot of cases, they\u2019ve already directly asked us if we also provide other household services.\u201d<\/p>\n So when will you be able to book some help assembling your new flatpack furniture? It\u2019s hard to say just when the new services will be scalable. \u201cWe are likely looking for a fast roll-out into many markets once we deem the product ready,\u201d says Purrer.<\/p>\n In short, Homejoy will continue the method that\u2019s worked in the past: keeping a narrow focus on the startup within the startup until all the wrinkles are ironed out, and then expanding. Though, whether they\u2019ll maintain the same rocketing growth habits given the recent pauses in Canada and France remains to be seen.<\/p>\n Company spokespeople in\u00a0both countries\u00a0have been insistent that Homejoy\u00a0isn\u2019t leaving these markets for good, that the decision is \u201cjust a pause, not a shutdown.<\/a>\u201d Purrer agrees: \u201cWe are focusing on the existing markets in order to come back stronger within the next few months.\u201d<\/p>\n![\"How](\"http:\/\/d1vqbpto5tbbz0.cloudfront.net\/blog\/wp-content\/uploads\/2015\/01\/15231034\/Screen-Shot-2015-01-15-at-11.50.26-AM.png\")
<\/a><\/p>\nIncredible Growth<\/h2>\n
Balancing Supply and Demand within Each Market<\/h2>\n
Know Thy Customer<\/h2>\n
Marketing Lessons<\/h2>\n
![\"Homejoy](\"http:\/\/d1vqbpto5tbbz0.cloudfront.net\/blog\/wp-content\/uploads\/2015\/01\/15231034\/Screen-Shot-2015-01-15-at-11.44.48-AM.png\")
<\/a><\/p>\nExpanding Their Services<\/h2>\n
Looking Ahead<\/h2>\n