So I decided to dedicate my life to fixing one of the biggest (and hardest) problems facing our generation today. Coming into Home Hero, my cofounder (Mike Townsend) and I had a taste of success and failure in startups.Mike founded a web-based point-of-sale company called Zing Checkout in 2012 that I joined and left before it was acquired by Big Commerce ahead of their IPO.
While this may come as a surprise to a lot of people, today we are announcing that Home Hero has decided to cease all operations and remove itself entirely from the industry of home care to focus on a new healthcare venture.This article should help people understand the forces that led us to this decision.The biggest implication of the ruling was that the DOL removed the caregiver overtime exemption for all home care workers — mandating that all caregivers must be paid overtime.While the intentions were likely positive, the result was immediately negative for every party involved.Still, while our new markets showed early signs of growth via online acquisition, we found ourselves competing with local home care agencies who were staffing experienced teams of field marketers whose primary purpose was to grow leads and coordinate discharges of patients from acute care facilities — such as hospitals, skilled nursing facilities, senior centers and outpatient facilities.
They were willing to drive across town to meet a family, bring them coffee and pastries, conduct a free home safety inspection and a two-hour consultation.
Our marketplace grew quickly due to our lower prices and our ability to match caregivers with clients so quickly.
We protected the marketplace by offering the support of a care management team, the personalization of profiles with photos and video interviews, a robust algorithm to control matching and dispatching, lengthy reviews from past clients, and a rating system to ensure quality.
But today, in what seems like the most bizarre strokes of fate, it brings me great sadness to announce that Flavor will also be one of our last clients at Home Hero.
Almost exactly one year ago, Home Hero lost its core identity when we were effectively forced to terminate our working relationships with 95% of our 1099 caregivers and required to adopt an inferior employment business model.
In the process, Home Hero also lost a majority of its competitive differentiators in price, speed and scalability that allowed us to be so disruptive in 20, and it had nothing to do with competition.