Re:Read This Before You Build Uber for X
by koolba on Friday September 01, 2017 @03:26PM
(#15151688)
Exactly. This is why Homejoy and every other "repeat by the same contractor" business in this market fails.
The savvy players on the provider side use these companies as a lead generator. Once they've got a new lead, they switch to their private services and they've got a 30% price advantage by cutting out the middleman.
Throw in cash / under the table billing and there's no way to compete against the direct provider. The best part for the providers is they don't even have to advertise the "off the books" offer. Every consumer knows it's there and they seek it themselves.
The savvy players on the provider side use these companies as a lead generator. Once they've got a new lead, they switch to their private services and they've got a 30% price advantage by cutting out the middleman.
Throw in cash / under the table billing and there's no way to compete against the direct provider. The best part for the providers is they don't even have to advertise the "off the books" offer. Every consumer knows it's there and they seek it themselves.