05 / 2022
Case Study
An online platform is being developed to provide families with domestic services without the need to hire and house a full-time live-in domestic helper.
Since the 1970s, Hong Kong has been a popular destination for hundreds of thousands of foreign domestic helpers. In 2013, there was one domestic helper for every eight households, and one domestic helper for every three households with children. This demographic makes up approximately 10% of the labor force. Although foreign domestic helpers have become a significant part of the local culture and workforce, the growth in their numbers has slowed in recent years. This is partly due to ever-increasing property prices, which make it harder for young families to justify the cost of hiring and housing a domestic helper.
Although full-time domestic helpers are becoming less preferred, the majority of couples work full-time, and there is still a strong demand for helpers in the market.
JoyChore is a matchmaking platform designed to assist working families with household chores. By introducing Hong Kong's domestic helper culture into the sharing economy, JoyChore aims to save time for the working class while increasing productivity and reducing overpopulation.
In theory, JoyChore tackles a growing problem with a contemporary and realistic solution in an existing and feasible market. However, it faces several other problems, such as sponsorship contractual issues, existing Facebook and WhatsApp groups, and users cutting off the middleman (JoyChore) after they make a match.
Foreign domestic helpers in Hong Kong are sponsored by agencies and employers under regulations. Under this contract, the domestic helper must live in the employer's residence and may not take on any additional employment. This means JoyChore will not be able to legally employ workers under this contract.
Hiring local or overseas workers increases the cost of JoyChore's services. This makes them less feasible and competitive than hiring a full-time domestic helper.
Dozens of WhatsApp and Facebook groups currently offer solutions similar to JoyChore. Users refer to these communities within their own circles, creating a sense of trust. However, many service providers often take jobs illegally to increase their income on their day off.
JoyChore also faces the critical issue of being cut off as a middleman. Unlike services like Uber, inviting someone into your home requires a lot of trust. After building trust with the helper, it is reasonable for both parties to exchange contact information and remove JoyChore from future contracts.
HomeJoy (the name is a coincidence) is a Silicon Valley startup that raised US$40m. It faced a similar issue of poor customer and worker retention.
To be a successful startup, JoyChore must spend the initial cost on training and branding. A brand that is easy and trustworthy.