I firmly believe this business model can work. I know of a local business that is going into its 6th year of operations. Cleaning houses is a large part of their revenues. They match house cleaners, handymen, grocery shoppers, cooks and assistants with professionals starved for time. The model is subscription-based and they have some large companies which give out these subscriptions as a bonus/perk to their employees.
Perhaps Homejoy expanded too fast? They overdosed on funding? Deadlines and progress meetings became too dreadful? Or maybe there are regulatory issues they could not resolve?
I think there is more to this than a shoddy business model imitating Pets.com.
You are comparing apples to potatoes. Every city has cleaning and janitorial service companies (I worked for one in high school). Obviously that model works. We pay our housekeeper $60/week and she's amazing.
What doesn't work is selling a service–cleaning or otherwise–for $20 when you have to pay the contractor $50 and a CAC of $12 (spitballing BTW).
At least Groupon shared the deal price with the restaurant and had some built-in virality.
At least Uber doesn't have to deal with drivers trying to end-around the marketplace and go directly at customers.
Perhaps Homejoy expanded too fast? They overdosed on funding? Deadlines and progress meetings became too dreadful? Or maybe there are regulatory issues they could not resolve?
I think there is more to this than a shoddy business model imitating Pets.com.