Oct 27, 2017 - Economy

On-demand cleaning proves profitable for two startups

Kia Kokalitcheva

Dan Teran, co-founder and CEO of Managed by Q. Photo: Noam Galai / Getty Images

Many gig economy startups have shut their doors, but two on-demand cleaning companies are showing signs of economic viability:

Handy, which provides cleaning and other home services, is profitable and cash flow positive, a source tells Axios.
Managed by Q, which provides cleaning and other office management services, said on Friday that its core office services business is profitable. Not included in that top-line math: employee stock grants, NYC headquarters rent and expenses for employees not working on that core business.

Different approaches: Handy and Managed by Q serve different types of customers from one another, with the former focusing on consumers and the latter on companies. Their business models also differ: Handy's workers (cleaners, handymen, etc.) are independent contractors. Managed by Q's cleaners are company employees, with benefits and even a bit of company equity.

Big money: Managed by Q has raised over $75 million from investors like Google Ventures and Staples, while Handy has snagged more than $110 million from firms like Fidelity and General Catalyst.

The story has been updated to correct the funding details, which were attributed to the wrong companies.

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On-demand cleaning proves profitable for two startups

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