The flaw in the model is that companies like these do not exist to provide a service to customers - they exist to persuade investors they're worth funding.
Homejoy was primarily a cash hoover, not a carpet cleaner.
On that basis it worked okay for a while. But the emphasis on Insane Growth [tm] as a metric for potential unicorn-hood meant that customer care, customer retention, and service quality - never mind basic business metrics like profitability - all declined to the point where these was only an empty shell of a business covered by a paper imitation of a multinational corporation.
The lawsuits didn't help, but I doubt they killed the company on their own.
Homejoy was primarily a cash hoover, not a carpet cleaner.
On that basis it worked okay for a while. But the emphasis on Insane Growth [tm] as a metric for potential unicorn-hood meant that customer care, customer retention, and service quality - never mind basic business metrics like profitability - all declined to the point where these was only an empty shell of a business covered by a paper imitation of a multinational corporation.
The lawsuits didn't help, but I doubt they killed the company on their own.