Unsettled challenges in home cleaning services force Homejoy to shut down.

Homejoy Inc. cleaning service declared bankruptcy last year. The company that provided an online platform to connect people with home cleaning and repair services shut down last year. The company was based in San Francisco but later expanded to Canada and the UK. According to a blog post on their website announcing the shutting down, the company claimed it was closing due to many complex challenges in the home cleaning services space. Five months later the company filed for bankruptcy in US bankruptcy court in San Jose in July.

Before closure, Homejoy was charging a $25per hour. The company was started by siblings’ Adora and Aaron Cheng. The Company, through investors like Google Ventures, and Repoint ventures the company was able to raise funding of over $38 million. These funds were able to keep the business running and help in their expansion.

According to the Wall Street Journal, however, home services startup companies are always threatened by lawsuits from employees. The lawsuits threatened to classify their employees to contractors which mean they’d have to raise labor costs from the original 20% to a 40%.other media reports showed speculations that such lawsuits may have been the results the company closed down and filed for bankruptcy.

Despite these challenges, however, Handy, one of the greatest competitor Homejoy Technologies Inc. has continued to flourish. Its services do not seem to be interrupted at all by these lawsuit threats. Handy recently raised $110 million worth of funding from its investors; Fidelity Management, Research Co and Capital Partners among others.

Handy Technologies Inc. is a startup company started in 2012 that also connects clients with home services online. It provides home cleaning, repair, moving help, faucets, interior painting, light fixtures, and furniture assembly services. Handy is the perfect place to find help. If you are moving and have no idea to carry your stuff or arrange your house, all you have to do is make an appointment with Handy and schedule your moving or cleaning. Moving can be hectic but Handy can help it be easier and enjoyable. Handy enables clients to contact these home cleaning companies online. It’s headquartered in New York USA.

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