How Apps Like TaskRabbit Work | TaskRabbit Business & Revenue Model
With the gig economy reshaping the traditional business, peer-to-peer platforms have started gaining popularity. Among all the successful apps running on this business model, TaskRabbit has got the attention of business owners worldwide. Whether you run a home services business or you are looking for a profitable venture to invest in, creating apps like TaskRabbit makes a good choice.
If you are ready to take your home service business online, here you will get to know all about TaskRabbit. You will get answers to frequently asked questions like:
- What is TaskRabbit?
- How TaskRabbit become successful?
- How TaskRabbit works- Understanding the business model.
- How TaskRabbit makes money- Revenue model explained.
No more delays, let’s start with them one-by-one.
What is TaskRabbit?
Being a two-sided marketplace, this platform connects two user segments seamlessly. The first one refers to ‘TaskPosters’ – the people who are looking for some help. And the second segment is about the ‘Taskers’- highly professional service providers. These providers are background checked individuals, having skills required to complete the listed task. In short, TaskRabbit helps people simplify their life, be their own boss, help people in need, and earn more money.
Apps like TaskRabbit allow customers to outsource a large number of household errands. Therefore, it is often referred to as Uber for home services. Being a pioneer in the on demand home services, Taskers provide services in 45 categories. Right from minor home repairs, TV mounting, furniture assembly to moving help, delivery, and more, there is a lot that it offers.
How TaskRabbit become successful?
It is worth noticing that since its inception, this on demand home services has received a massive funding. Making its mark in the industry, TaskRabbit has grabbed the attention of over a dozen investors. The below stated growth timeline is enough to explain how it became successful.
The Growth Timeline of TaskRabbit
- 2008- Apple conceived the household services marketplace idea
- 2009 – Built the prototype and received $ 1 Million funding from Baseline Ventures and Maple Investments
- 2011- Raised $5 Million Series A funding & $ 17.8 Million in Series B round of funding, with over 2000 providers with them.
- 2012- Got C Series funding of $13 Million
- 2014 – Evolved into a hire-only model & raised around $38 million funding.
- 2017 – App was acquired by IKEA
- 2019- Generated around $5.7 million revenue
- 2020- More than 140,000 taskers on the platform.
From this timeline, it is quite evident that investors find a huge potential in apps like TaskRabbit. Now to understand what makes it so promising, have a look at the important segments of this business.
How TaskRabbit works- Understanding the business model
Apps like TaskRabbit serve to be a platform connecting people who need help to people who are willing to offer help. Basically, these apps create a supply for services, catering a number of them under one platform. When it comes to TaskRabbit business model it is generally termed as the aggregator marketplace. Simply stating, in this business model TaskRabbit doesn’t hold any tangible assets or inventory. It acts as a middleman connecting task posters to the taskers, who are paid for their efforts.
Before you dive deep into the TaskRabbit business model, take a look at the user segment here:
Who uses the TaskRabbit app?
Generally, apps like TaskRabbit have two different user segments. Both the user segments are offered a separate interface to use the platform, ensuring that the app interface is optimized to their needs.
- Task Posters – It is a term used for the users who are looking for help with household work. They need a tasker willing to do the same according to their need. Users can register, look for service providers, make payment, and a lot more.
- Taskers –These are the professionals who want to undertake the booking requests made by the task posters. Apps like TaskRabbit are perfect for freelancers willing to work for a short period and earn more money. A simple sign up process, adding some personal details, create the profiles and they are all set to go. After approval from the business admin, they can list their services, fees, etc. through the app. And then can take the booking request easily.
How TaskRabbit Works?
Working of apps like TaskRabbit is pretty simple. A user posts the job with details, chooses a professional as per their need, gets the work done and makes a payment. The detailed process is here:
- Select Category: Customers can use advanced search and filter to look for various task categories. They simply post their task and pick from categories like handyman, cleaning, packing and moving, etc.
- Add Description: While posting the task, users need to add a detailed description of what they are looking for. It can be related to work, skills, date, or time.
- Compare Taskers: After posting the task, users will be able to check the different taskers available with the skill set required. They can go through the list, check their details, compare these taskers and hourly rates, before making a final decision.
- In-app Chat: The app also allows users to communicate with the finalized taskers. They can easily exchange any required information.
- Task Completion: To complete the tasks, taskers need to visit the user’s address at the specified time and they receive payment once the job is done.
Value propositions for apps like TaskRabbit
Being a two sided marketplace, these apps offer various value propositions to both task poster and task doers. And both have equal importance. Checkout some of these propositions include:
TaskRabbit revenue model – How it makes money?
Like said earlier, TaskRabbit does not have any tangible assets, it connects two segments. Hence, when it comes to making money, TaskRabbit majorly earns its revenues by charging:
- Commission Fee: It is one of the most common ways through which apps like TaskRabbit earn. For each task completed on the app, TaskRabbit receives a commission. And the same commission is used to pay for the maintenance, customer support, insurance, and other services. Generally, the service fee charged is calculated as 15% of the total amount paid to the tasker. So, the user pays for a fee that includes the hourly rates of the tasker and 15% which is taken by the company.
- Trust & Support Fee: Besides the service fee, TaskRabbit also charges a trust and support fee from users. This is somewhere around 7.5% and is added to each invoice. Basically, this fee is charged to ensure that they can facilitate the exchange and offer timely support, if required.
- Advertising & Promotions: Another way to make more money is to charge more from the taskers who want to appear at the top of the searches. While it gets them more visibility, chances of closing more tasks is always there.
- Peak Pricing: Just like Uber runs on a surge charge algorithm, TaskRabbit can add peak pricing to certain services or categories which are in higher demand. There might be some taskers or services which are highly required and users are willing to pay higher for them.
Knowing the TaskRabbit business and revenue model in detail, you might now be ready to launch your own home service marketplace. For this, you will definitely need a right tech partner. Code Brew Labs is right here to serve you. Let’s connect to understand your needs and build your TaskRabbit clone.
July 16, 2021
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