Facebook is getting into the gig economy by bringing cleaning and other home services to Marketplace — Quartz

Everyone wants in on the high-margin gig economy. The low-margin gig economy, in which brokers of work opportunity take a more traditional brokerage fee, between five percent and 10 percent, compared to today’s 25 percent or more of each transaction, will disrupt this movement toward consolidation. If Facebook recognizes this is its opportunity to be on the user’s side, it might break through.

Home services is big business, with US consumers spending $16 billion on cleanings alone in 2017. Facebook has partnered with cleaning and services companies Handy, HomeAdvisor, and Porch to bring cleaning and other such services to Marketplace in the US. That comes after Amazon hired a crew of cleaners for a Seattle-area pilot program in March, and Walmart partnered with Handy on furniture installation and assembly. In September 2017, Ikea bought TaskRabbit to build out delivery and assembly.

Source: Facebook is getting into the gig economy by bringing cleaning and other home services to Marketplace — Quartz

Author: Mitch Ratcliffe

Mitch Ratcliffe is a veteran entrepreneur, journalist and business model hacker. He operates this site, which is a collection of the blogs he's published over the years, as well as an archive of his professional publishing record. As always, this is a work in progress. Such is life.