When Vator holds its two-day Splash Oakland event next month on May 6 and 7, one new addition is a “FUTURE of” series covering different the fastest-growing markets across tech and the opportunities they hold.
One panel, which I will be moderating, will be on marketplaces/the sharing economy, which are companies that rely on peer communities in which participants share access to products or services.
One company that is at the forefront of this movement is Care.com, a service that is used by families to find caregivers. It provides a place to easily connect and share caregiving experiences and get advice on needs such as child care, special needs care, tutoring and lessons, senior care, pet care and housekeeping.
The service helps families find, and select, caregivers based on detailed profiles, background checks and references for hundreds of peer reviews and pre-screened providers.
So how does Care.com make money?
The company has multiple revenue streams:
- Premium consumer subscriptions
Premium members fees break down to $39 for a single month, $78 for three months and $156 for a full year ssubscription.
For caregivers that are looking to be hired, a premium members means that their profile will be highlighted in the search results, and they will also be ranked higher. They also receive priority email notification of new job listings.
They can also search the “Families Seeking” categories, see which families have viewed theur profile, contact families that have not yet posted a job and gives them a free preliminary background check.
For families who become premium members, they get the ability to contact caregivers as well as other members on Care.com, see caregiver references, get free background checks, see full job posts and full profiles.
- Care.com HomePay, its household payroll and tax service
Care.com charges $175 per quarter for a single household employee, and another $75 for each additional household employee.
This service offers tax payroll management tools, as well as help with tax filingg.
- Workplace Solutions, our employer program, where companies pay to subsidize the cost of our service for their employees as part of their benefit plans
Care custom designs Workplace Solutions specific to each client, so there is not a set fee that each company pays.
- Business Services which enable able companies in the care space to recruit staff and/or advertise their services on Care.com
Companies pay either a set rate regardless of the number of referrals they receive, or a variable rate based on the number of referrals they receive, plus any applicable sales or other taxes.
Total revenue
In 2013, Care.com’s revenue was $81.5 million, up 68% from $48.5 million in 2012. The company does not break out how much revenue it recieved from each specific stream.
It’s total members also grew 46% to 9.7 million from 6.7 million in 2012. That number breaks down to 5.3 million familes, of which 551,000 are paying members, and 4.5 caregivers, of which 88,000 pay.
The company made $148,000 per paying family throughout the year, and $66,000 per paying caregiver.
Founded in 2006, Care.com raised $109 million in total funding, most recently a $50 million round from from Matrix Partners, New Enterprise Associates and Trinity Ventures in August 2012, before going public in January of this year.
(Image source: bostinno.streetwise.co)
