How Handy Inc. Has Opted To Reinvent Itself in the Wake of Recent Loses

Handy CEO, Oisin Hanrahan, is a man between a rock and a hard place. A few months after delivering his pitch, the company had been on a losing streak courtesy of his misplaced strategy. His management could not hide their disbelief after the strategy blew up in their faces, and the CEO had to take responsibility for the situation. Mr. Hanrahan had strongly advocated for the replacement system of hiring cleaners with an online process aimed at facilitating the execution of tasks. Additionally, such a system had been earmarked to commence activities across all 28 markets.

Despite initial resistance by his co-founder, the CEO managed to convince the Board to endorse his proposal with the aim of promoting division and specialization of labor. However, the duo agreed to conduct a limited trial and gauge the effectiveness of the new system. The trial run produced fair results that favored the enrollment of the program despite criticism from experienced professionals.

Despite raising more than $ 110 million in venture capital funding, Handy failed to convince several venture capitalists who specifically emphasized on the probability of losing revenue from the program’s roll out. Due to low returns from the online system, Handy.com was forced to cancel several bookings as the demand was surprisingly low compared to the supply available. Such an unexpected outcome was a reminder of the past challenges experienced by the duo in the quest for profitability.

Measures Taken

Such results jolted the co-founders to think of a quick and efficient solution to remedy the dire situation. Despite being dodged by a few complaints from customers, Handy had the financial imperative and the space to reinvent itself to survive such turbulent times. The collapse of its principal competitor, Homejoy, also played into the hands of the co-founders as a sign of better times to come. Handy opted to hire 100 customer service agents to deal with the influx of incoming complaints.

The company deemed it necessary to outsource the customer service department to call centers in Missouri and Florida. Not only does it encourage efficiency and professionalism, but also saves the firm millions in expenditure. Despite feeling gutted for laying off thousands of workers, the company knew it was the right decision to make. For more info, check out: https://www.handy.com/cleaning-services/new-york.