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Homejoy's loss could be Google's gain

Zach Miners | July 20, 2015
Homejoy, the at-home cleaning service that's one of a new breed of startups serving as a broker of on-demand services, is shutting down, as companies in that category face legal challenges aimed at forcing them to classify freelancers as employees.

The company competed with rivals like Handy and TaskRabbit. For a time, its workers provided cleaning services for Airbnb hosts who wanted it.

Recently, Homejoy was said to be looking to be acquired by Handy, which had more funding to support future growth. Those talks apparently broke down.

The site's closure also arrives as larger competitors, including Google, aim to stake a bigger claim in the home services market. These competitors have a larger war chest to battle on the legal front.

Amazon has already taken a leap into the market. In March, the company launched a new home services feature, to let users hire workers skilled in anything from plumbing to home theater installation.

 

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