Handy probably wouldn’t have survived as long as it has if the founders didn’t put an extra amount of effort into keeping it afloat. The company’s idea is inherently very simple. It hires cleaners and assemblers. It then matches them up with customers that are looking for the services provided. It is said that 90% of startups fail. The reasons for this are usually complicated. Handy’s simple business model was met with some very odd complications that involved situations that were out of the company’s control.
Many people think of the beginning of business startups as a sort of spending spree. Handy managed to raise a huge amount of venture capital, but it wasn’t able to immediately turn it into a profit. That part isn’t very surprising. The company still saw a sharp decline in profits in the middle of 2015. Founders Oisin Hanrahan and Umang Dua were afraid that this would be their last shot at making sure the business was successful.
Handy ultimately ended up switching gears before the business went completely under. They took a lot of drastic measures to cut costs. They tightened up the bolts on the Handy.com website’s design and implementation. This made it significantly easier and more cost effective to recruit workers. They had to cut costs on virtually every layer of their business model. The issue with Handy in comparison to taxi services like Uber is that cleaning bookings require slightly more forethought. Cleaning services have a high rate of failure because they are thought to be based heavily on referrals between customers. The company maintained a high standard of quality throughout its ups and downs. It ended up replacing human employees with chat bots to save costs. The company’s current focus is on raising more capital. It seeks to continue providing the standard of quality that its customers have come to expect.