The sudden flurry of on-demand service startups is showing no signs of stopping any time soon. Handy is a company based on the said model that used to provide home cleaning services. It is one of the few on-demand home services startups that actually managed to survived. Others like HomeJoy weren’t so lucky. It turns out that not only has Handy prospered in the home services market, it has decided to expand to furniture delivery and assembly as well.
Handy Delivery will be the name of the arm which deals with furniture business. The plan is to let users shop for the furniture item(s) of their choice from various vendors, including IKEA, and then offer them delivery and assembly services. It won’t be another e-commerce portal, the company’s founder assured the media. Profit margins won’t be applied to the furniture’s price, instead buyers will have to pay if they want to utilize the delivery and assembly service. Handy believes it can offer customers a better deal than the stores do in add-ons. Assembling your own furniture is often seen more as a hassle than a blessing any way.
Handy doesn’t have any sort of deal with a furniture company yet, not even IKEA. The move overall represents acute business prowess though, as it’s a smart way of directing customers towards its primary home cleaning business apart from providing a secondary revenue stream. Just imagine the number of people who’ll end up having a great experience with Handy Delivery for furniture handling and then think “Hey, why not try their house cleaning service as well?”
As we have pointed out in the past though, the on-demand service model is still a quite fragile one and companies in the sector need to tread carefully or they risk ending up like HomeJoy. Aggressive marketing and selling services at a net loss in order to attract customers have been the two biggest mistake companies in this industry have made. Handy needs to make sure it doesn’t make any type of business mistake at this stage.