What is TaskRabbit?
TaskRabbit is a two-sided marketplace that connects ‘TaskPosters,’ people who need help, with a network of pre-approved and background checked individuals who have the time and skills needed to complete the listed task. Hailed as a godsend to people with more money than time allows people to outsource small jobs and tasks to others in their neighborhood. TaskRabbit aims to help people take back their lives, be their boss, help people out, and make some money.
Founders, Funding Received, Salient Features, and Facts
Currently active in about 19 cities, TaskRabbit has received massive funding from over a dozen investors and has made a mark in the on-demand industry with its innovative concept of outsourcing simple tasks. It’s seen as a life savior to people short on time and a gold rush to unemployed or under-employed people. Following are some facts about Plateform:
- Founded by Leah Busque in 2008 as RunMyErrand and later named as TaskRabbit in April 2010
- Has raised around $38 million funding as of July 2015
- Company valued at $150 million as of December 2012
- The company makes around $5 million monthly as its Revenue as of Dec 2011
The amount of funding received by TaskRabbit shows that investors find a huge potential in the business. For example, Zipcar CEO Scott Griffith was so amused by the idea that he offered a small space in his office to Busque in the initial days. On the other hand, Tim Ferris, the famous American author, entrepreneur, angel investor, and public speaker, became an informal advisor to help Busque conceptualize her idea.
To understand what makes TaskRabbit a promising business, let’s have a look at the other segments of the business.
Salient Features of TaskRabbit
- Available in Atlanta, Austin, Boston, Houston, LA & OC, Phoenix, Portland, San Antonio, Washington DC, Chicago, Dallas, Denver, Miami, New York City, Philadelphia, San Diego, Seattle, SF Bay Area, and one international location as London for now.
- Crowdsourced Marketplace model with TaskPosters willing to outsource petty tasks connected to TaskRabbits willing to do those tasks.
- Over 50 full-time employees working in the San Francisco office and about 50,000 runners signed up on the platform.
- Saves time
- Easy to get help
- Taskdoers with a clean background
- Insurance (every task is insured upto $1,000,000)
- Cash-free payment
- Local jobs in and around the neighborhood
- No scheduled job, work at your own convenient time
- Instant money- wages immediately after the task
- Better return on reputation as the level increases
TaskRabbit’s 2 Customer Segment Explained:
- People who want to outsource errands can post their job on the platform, and TaskRabbit connects them to qualified Taskers available to help.
- People who are on the go can post the task through the app and have the work taken care of by the time they return.
- People can pay through the app after the task has been accomplished.
- People who are underemployed or unemployed or want to make some extra money can sign up to be the TaskRabbit.
- The background is checked, and an aspirant is interviewed following a quiz to get selected as a Tasker.
- In the previous business model, Taskers would bid for a job, but since June 2014, Taskers are automatically assigned a job. They can either accept it or reject it.
The 3 step model about how TaskRabbit Works:
- A TaskPoster posts a job, and TaskRabbit suggests three contractors, along with their hourly rates, who represent a range of prices and experience levels.
- A Tasker can accept or cancel the job at his convenience and availability.
- The Tasker completes the job, processing the payment through the app.
After a thorough background check, all the taskers in TaskRabbit’s database are fully talented and verified. After completing the task, a task poster can review and rate the service.
How TaskRabbit earns Revenue:
- The only way TaskRabbit earns its Revenue is by taking a cut on every transaction that happens over the app.
- Previously, when TaskRabbit opened its business portal for local businesses that could hire workforce from, the company would charge about 26% from the local business. However, very soon shut its business portal.
How TaskRabbit finds customers:
- Word of Mouth Advertising
- Internet Marketing
- Free First Delivery
- Various Offers
The Process of Recruiting Taskers:
- People who want to be a Tasker have to apply online. They can log in with Facebook or LinkedIn and complete their application.
- The background is thoroughly checked, followed by an in-person interview. · After being shortlisted, Taskers specify their skills and interests and are accepted into the database.