TaskRabbit changes strategy, launches on-demand service with fixed hourly rates

By on July 10, 2014, 5:30 PM
android, ios, taskrabbit, on-demand service

Last month, task-outsourcing service TaskRabbit revealed plans to completely revamp its business model. The service up to this point has been described by some as the eBay for real-world labor.

Need someone to run some errands, clean your home, repair a leaky faucet or help you move? Simply post the job on TaskRabbit, declare the maximum amount of money you'd be willing to pay for the job and let those interested in doing the job - the TaskRabbits - bid for the opportunity.

While the company has enjoyed substantial growth since launching five years ago, they began to notice last summer that the number of completed tasks were declining and individual tasks were receiving less bids.

Based on customer feedback and data from their marketplace teams, they found the cause of friction on the platform. The auction model - it needed to go.

Today, TaskRabbit rolled out an entirely new platform in which customers can enter in the type of work they need done and instantly find bookable people willing to complete the task at hand. With the auction system gone, TaskRabbits will now be hired based on a fixed hourly rate.

The new platform highlights four of the company's most popular categories: cleaning, handymen, personal assistance and help with moving. Customers can requests tasks that don't fall into these categories although it's discouraged.

To complement the new model, TaskRabbit has also launched a redesigned iOS app and a new website. What's more, they're debuting an Android app for the first time ever. They've also introduced a new insurance policy designed to help convince newcomers that the service is indeed safe to use.

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