Domestic service platform Care.com: How to build nearly billion dollar revenue?

Care.com was founded in Boston, USA in 2006, Sheila Mercelo as its founder and CEO, is a domestic service platform to connect with employees and service personnel, and also a platform for employees and service personnel to share experiences and suggestions. At the beginning of 2012, Care.com began to expand internationally, successively into the UK and Canada, and then acquired Besser Betreut, Europe's largest online home-economics website. Since its inception a total of four rounds of financing, accumulated more than 100 million U.S. dollars. The investors include new Enterprise Associates, Trinity Ventures, and Jingwei Venture (Matrix). January 24, 2014 in the United States Nasdaq listing. Operating mode in the initial stage of development, care.com mainly provide childcare services, and then its range of services to provide gradually increased to care for the elderly, pet care, home cleaning, tutoring and so on. In the process of development, care.com constantly excavating the needs of all kinds of care services, providing more complete care services, the company's ultimate goal is to become a one-stop domestic service platform. On the platform, the family use process mainly for free registration, access to establish files, post, hire service personnel, pay, evaluation, service staff use process and family slightly different, including free registration, release resumes, search positions, be hired, get paid. Family registration account, simply fill out the personal data, including address, postcode, e-mail can be added, and then according to their own needs of domestic service conditions for refinement, such as the need for child care families to fill in the care of childcare, childcare centers, types of tutoring and so on. Domestic service personnel online registration of personal information, you need to choose what kind of domestic services can be provided. Service personnel related background, comments, social identification and other information about the security of services for the employees to access, Care.com has a dedicated team responsible for reviewing the information of the service personnel, timely detection of suspicious or improper content, in addition to the family to provide reasonable assessment and interview recommendations. Care.com currently covers 5.2 million families, and the number of households in the United States requiring domestic services is around 50 million, and the penetration rate for these families is still very low. 4.5 million nursing staff were absorbed, global membership reached 9.7 million and membership satisfaction was as high as 85%. Of these users, 52% through the mobile end of the Web site, has exceeded the number of PC-side traffic, anytime and anywhere to access to domestic services is increasingly obvious trend. In the user two times consumption, the platform's repeat utilization rate exceeds 50%, the following two groups of related data can be explained from the side of the reason: the platform's business matching rate reached 80%, business matching repeat purchase rate of 56%, negative evaluation of only 8%; Consumer payment tool repeat rate of 88%, negative evaluation only 1%. Profit model Care.com profit model is divided into the following three parts. First, the individual pays the service. Family and domestic service staffAfter online registration, for a period of time care.com for the registered family and service personnel to provide free supply and demand information on the market, after the free probationary period, if the user also want to continue to enjoy the service, you need to pay a certain fee. Second, business matching. To help traditional domestic service companies or agency agencies to find families in need of domestic services on the Internet, docking families and domestic service companies or agency agencies, and to collect business matching costs. The individual housekeeping service personnel do not have to pay any fees. Third, pay value-added services. Care.com provides premium value-added services such as family and corporate care programs. Relying on its rich domestic service personnel database and the diversity of optional objects, to Google and Facebook and other companies to provide corresponding domestic services, as the company's employees to provide benefits. CARE.COM2012 annual revenue of 48 million U.S. dollars, 2013 years ago nine months revenue 58.97 million U.S. dollars, net loss of 24.66 million U.S. dollars, the largest one of the cost of sales and market costs, to 43.85 million U.S. dollars, which is still in the expansion of the period. 2013 years ago nine months gross profit margin 76%, operating profit margin-40%, in the long run, the company expects operating profit margin will reach 18-20%. Apart from Care.com, the other domestic service platform of Homejoy is more mature. These two platforms have a lot in common: both as a link between a family employee and a domestic service provider, with a focus on information verification by service personnel, currently covering the U.S., Canada and UK markets, and actively expanding internationally. Although there are a lot of similarities, but the care.com and Homejoy differentiation strategy is also more obvious. First, the difference in service items. Care.com is mainly about nursing services, including children, the elderly and pets, in addition to extended services such as family cleaning and tutoring. Homejoy service is focused on cleaning services, in addition to a small proportion of the toilet maintenance, painting walls. Second, the difference in service objects. Care.com Business Matching service object is a traditional domestic business or intermediary, for them to find the need for domestic service family, Homejoy More is the family employee and service personnel docking, no intermediary enterprises. Third, the difference of profit model. Care.com in addition to earning through the traditional Commission model, as well as other paid value-added service customization, Homejoy has not seen a similar business at the moment. Development prospects Care.com stock market after the rise, even if the fall also maintained a good increase, you can see its development prospects by the capital market generally optimistic. The main reason is that its advantages are obvious. First, allocate resources efficiently. Care.com the offline domestic service resources information and open on the online platform, breaking the existing offline resources and service demand docking information asymmetry, using the Internet system for information classification, screening and matching, to online efficient resource allocation to replace offline inefficient service docking. Second, the service personnel background specification. Care. com has a dedicated team to review the services related to the background, comments, social identification and other information about the security of services, in addition to providing families with reasonable assessment and interview recommendations. The transparency of online information makes the service staff review more standardized and provide a guarantee for service. Third, the system closed loop formation. From the account opening, information search, screening matching, booking, to the offline service after the online payment, comments, all aspects of the online system has been achieved full connection. The online leading information flow, the line is heavy in the service experience, the whole system-based closed loop has been formed. Its four, the profit pattern diversification. The Care.com profit model is not limited to the traditional commission model of individual paid services and business pairing, but also to revenue through other custom value-added services, which makes the profit more imaginative. Although its advantages have been revealed, there are some deficiencies. On the one hand, the service control is slightly inadequate. At present, focus on the information level of resource optimization allocation, for the service personnel themselves only in the background review stage, in fact, the service quality of Service link care.com and not too much control capacity. Compared with the standardized nursing service in the Japanese Medical Museum of the listed enterprises in Japan, no care.com of the service link standard can guarantee the service quality. On the other hand, the market penetration rate is low. Currently, Care.com's target household penetration rate in the U.S. market is only around 10%. Although leading other domestic enterprises, but compared with its extensive coverage, so low permeability shows that it is not deep in the single region of the market. This leaves a lot of opportunities for its rivals before it has an absolute scale advantage. Reference to the Care.com platform model is not complex to imitate, and there is a similar domestic home service platform appeared, but why did not appear large-scale domestic service platform, not listed in the domestic enterprises? The reason lies in the different national conditions, many of China's imitation of successful foreign companies have died in the absence of a change in the individual. The domestic user lacks the trust and the service standard is high. Domestic users through the online access to domestic service is still in the cultivation stage, due to the overall social environment of the objective factors, the user is also less than the lack of trust on-line direct selection of domestic services. In addition to the quality of service itself, the domestic user requirements standards and the same foreign differences, the quality of service for domestic users often do not have a higher degree of satisfaction, and then affect two of times consumption. For domestic enterprises, Care.com still has its reference. In contrast, domestic home service platform system is not perfect, in the intelligent matching resources and links through the above exist to improve space. In addition, the domestic home service platform profit model is single, and the commission model in China has always been unable to avoid conflict, care.com extended paid value-added services is a domestic expansion of the profit model is a direction, but whether the direct imitation still need to depend on the user characteristics. The care.com and the traditional domestic enterprises, intermediary cooperation and mutual win also has its enlightenment significance.