On the last day of July, Homejoy, the originator of American housekeeping 020, announced its official closure. Does it mean that the O2O industry has just started and has entered the winter? Is this the end of the O2O industry? of course not. This is about the crazy development Tunisia Phone Numbers history of Homejoy. One of the hottest startups of 2013, Homejoy is based in San Francisco and launched in July 2012. Homejoy has grown rapidly with the slogan of cheap and high-quality housekeeping services. Adora Cheung, co-founder and CEO of Homejoy, said in a statement. “That’s why Homejoy has a Tunisia Phone Number huge opportunity — we take the hassle out of it and make it simple to find a credible background-checked cleaner for your home.
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But the newly opened market is facing pressure to start. So the cheap promotion strategy has become a natural means of opening the market. Homejoy used to sell 75% of its booking service from deals and discounts. The original 2.5-hour home cleaning service costs $85. But in order to attract as many new customers as possible, the company is Tunisia Phone Number offering a discounted $19 promotional price. Such a promotion strategy will not only bring no benign users with continuous spending power to Homejoy, but also lead to serious capital return problems. The return rate of users brought about by promotions was a mess, and this vicious circle eventually led to the closure of Homejoy. Therefore, Homejoy’s experience also serves as a warning to Tunisia Phone Number domestic projects that have just started and have completed A and B financing.
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Whether it’s Didi, Kuaidi, or Meituan, Baidu, and Ele.me, which have been on the “rice mouth”. They have chosen to subsidize the money directly to users, and they have all gained a share in the market. However, there must be a degree of money burning. Excessive burning Tunisia Phone Numbers of money to subsidize users will violate the principle of repetition. Excessively cheap services lead to the deviation of market positioning people. This will lead to the problem of low user retention rate. Once the service price returns to the healthy value of enterprise development, it will lead to a sharp decline in user activity; if there are fewer active users, repeated consumption will be directly affected. Tunisia Phone Number If user habits are not cultivated, the market will naturally deform, be crowded out by competitors, and users will deny it, and various problems will also arise within the enterprise.