Cleaning site Homejoy to shutter July 31 due to battling worker classification lawsuits

You probably have any Homejoy offers in your hopper, you may want to e-book that appointment stat.

In accordance to Re/Code, the corporate is shutting down July 31. The trigger? Combating worker classification lawsuits, the varieties that different corporations within the share financial system are presently battling, particularly Uber.

CEO and co-founder Adora Cheung advised Re/Code that the “ ‘deciding issue’ was the 4 lawsuits it was preventing over whether or not its staff ought to be categorised as workers or contractors. None of them have been class actions but, however they made fundraising that a lot tougher.”

Cheung additionally advised Re/Code that “plenty of that is unlucky timing,” citing the current California Labor Fee’s Uber decision which said that the corporate’s drivers ought to be categorised as workers and never unbiased contractors. Corporations shouldn’t have to pay payroll taxes, social safety advantages or supply advantages to contract staff.

Cheung posted the information on Homejoy’s blog, writing that even supposing they “grew a world community of remarkable dwelling service specialists, and served lots of of hundreds of properties in 35 cities within the US, Canada, UK, Germany and France” the “unresolved challenges” within the area led to the choice.

Regardless of some important funding, Re/Code reporting that Homejoy raised $40 million from sources together with Y Combinator, PayPal founder Max Levchin, and Google Ventures, it was apparently not sufficient to maintain working and struggle the lawsuits.


Leave a Reply

Your email address will not be published.

Back to top button