Businessmodel of Care.com

Customer Segments

Care.com has a multi-sided business model, with two interdependent customer segments that are both needed in order to operate:

• Careseekers  - Individuals or businesses seeking care services for people, pets, or homes
• Caregivers – Individuals offering care services to careseekers ### Value Proposition

Care.com offers four primary value propositions: accessibility, convenience, risk reduction, and brand/status.

The company creates accessibility by providing a wide variety of options. It has acquired several organizations since its founding, including Kinsights, Citrus Lane, Parents in a Pinch, Breedlove & Associates, and Besser Betreut. This strategy has enabled it to greatly expand its capabilities and diversify its portfolio, which now includes the following:

• Child Care – Includes in-home care, out-of-home care, and focused care
• Adult/Senior Care – Includes companion care, personal care, and dementia/Alzheimer’s care
• Pet Care – Includes dog walkers, pet sitters, boarding, grooming, and training

• Home Care – Includes housekeepers, house sitters, errand runners, and event help Care.com also offers the following additional services to businesses:

• Workplace Solutions – Provides a selection of care services for employers to provide to their employees, including backup care services and senior care planning services
• Recruiting Solutions – Provides a platform for care-related businesses such as senior living facilities and day care centers to advertise job opportunities and recruit caregivers
• Business Marketing Services – Provides a platform for care-related businesses to find new customers and promote their brands The company offers convenience by making life simpler for customers. Careseekers who publish a job are guaranteed to be contacted by a caregiver within three days. They can also make and track payments to caregivers through a Payments Center. Caregivers have constant access to opportunities, as a new job is posted every minute and a new match is made every two minutes. They can also receive their payments through direct deposit.

The company reduces risk by maintaining high safety standards. It conducts three tiers of third-party background checks for all caregivers promoting their services on its platform. It also features a “Safety Center” on its website, a section that assists families with the search and hiring process.

The company has established a strong brand due to its success. It bills itself as the world’s largest online marketplace for finding and managing family care. It has 22.8 million members across 19 countries, including 9.9 million caregivers and 12.9 million families. Lastly, it has won many honors, including the following:

• Ranking on the 2015 Deloitte Technology Fast 500
• A Seal of Distinction from the Alliance for Work-Life Progress
• A Webby Award for its Karoo application at the 17th Annual Webby Awards
• Recognition as one of the Top Places to Work by The Boston Globe
• Recognition as one of the Best Places to Work by The Boston Business Journal ### Channels

Care.com’s main channel is its website. It also uses a direct sales team to promote its extra services (workplace solutions, recruiting solutions, business marketing services).

The company promotes its offerings through its social media pages, online/TV/radio advertising, direct marketing, affiliate marketing, and participation in industry events such as conferences.

Customer Relationships

Care.com’s customer relationship is primarily of a self-service, automated nature. Customers utilize the service through the main platform while having limited interaction with employees.

The company’s website provides a wide variety of resources for customers, including articles, guides, and answers to frequently asked questions. It also features a “Widgets” section with the following:

• Adjustable Time Frame Babysitter Pay Calculator Widget - Calculates hourly, daily, monthly, and annual babysitter costs
• Babysitter Pay Calculator Widget – Calculates local average babysitter pay rates
• Local Care Index Widget – Identifies how U.S. towns rank when it comes to finding quality, affordable family care There is also a community element in the form of a customer forum called “Care Community”.

Key Activities

Care.com’s business model entails maintaining a common platform between two parties:  careseekers and caregivers.

Key Partners

Care.com’s key partners are the suppliers that provide it with services it needs to run its operations. For example, it partners with Knowledge Universe, a firm that runs child care centers, to provide its corporate clients with access to backup care facilities.

It also maintains an affiliate program through which third-party organizations promote its offerings on their platforms (websites, mobile apps, etc.) in exchange for a commission.

Key Resources

Care.com’s main resource is its proprietary software platform, which serves over 22.8 million members.

It depends on human resources in the form of engineers that maintain and update its platform, sales employees that promote its services, and customer service personnel that provide support.

Lastly, as a startup it has relied heavily on funding from outside parties, raising $156.9 million from investors as of June 2016.

Cost Structure

Care.com has a cost-driven structure, aiming to minimize expenses through significant automation and low-price value propositions. Its biggest cost driver is sales/marketing expenses, a fixed cost.

Other major drivers are research/development and administration, both fixed expenses, and cost of revenues, a variable expense.

Revenue Streams

Care.com has two revenue streams:

• Subscription Revenues – Revenues it generates from fees charged to customers for subscribing to its platform; fees range from $37 for a monthly subscription to $147 for an annual subscription
• Contract Revenues – Revenues it generates from annual contracts with corporate employers for its business services (recruiting, advertising, etc.)