Does the Handy Cleaning Service Have a Chance for Success?

There are some finance executives who have been critical of business models like the one used by companies like Handy, Uber and Lyft.

Basically, the customer uses an app to order a person to perform a service. The customer pays the worker through the app and the business assumes some liability for the work being completed via insurance. However, the worker works as an independent contractor and the company that connects the worker with the customer doesn’t assume liability for everything. The company works extra hard to ensure that they’ve hired quality workers and only certain people are allowed to contract with the company as independent contractors. However, some would be investors, not used to this rather, “new fangled,” way of doing business aren’t so sure it’s safe and worry that the business model isn’t strong enough when it comes to safety. They feel it’s akin to a customer going onto a website like Craigslist and ordering services from a stranger; and that the business puts itself at too much risk for liability.

However, most customers and workers simply don’t feel this way. The times are changing and many people from Seniors to Baby Boomers to Gen X and Y’ers to Millenials are very accepting of this way of conducting business that integrates mobile access with services and products.

People from all generations have begun to accept social media throughout many of its various channels and have become more comfortable with doing business in a more free-form way. This isn’t to say that everyone feels like this. However, Handy.com has just secured investment dollars to expand their business in over 25 new territories in the United States alone, despite the pundits and the criticism. This shows that many people in the know can recognize a viable business model when they see one.

 

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