Why Homejoy Failed: reliance on Groupon for customer acquisition

The amount of capital you raise becomes a competitive advantage when you’re able to successfully engage in a war of attrition.

Former West Coast operations manager Anton Zietsman said that Homejoy was all-too aware of the challenges for startups and small businesses to attract repeat customers from Groupon. But he said they were forced to rely on it heavily because of intense competition with their chief rival, Handy, which employed a similar strategy.

Source: Why Homejoy Failed — Backchannel — Medium