Question: Please help in this question asap Homejoy was a startup that focused on providing independent professional household cleaning. services to their customers with a nominal
Please help in this question asap
Homejoy was a startup that focused on providing independent professional household cleaning. services to their customers with a nominal commission over it. They received funding of $38 million in 2013. The expectation was that this large investment would see a return in time. When the company started, it saw a rapid growth in its revenue. In six months, it branched to over 25 cities. To expand the market even further, they started offering services at discounted rates. However, eventually, the growth slowed down. It was found that the cleaners weren't professional enough and were often just homemakers making an extra buck, along with other operational and marketing failures that contributed to the failure of a once-promising startup. The company soon shut down.
Based on this what do you think was the main cause of Homejoy's failure?
A) Increasing their user base through expansion instead of catering to their already loyal customer base
B) Directing resources and cash flow to their promotional offers instead of other necessary operations
C) Not having enough funding to cater to the expenses of the increasing demand
D) Having a weak revenue model where they only made a small commission, and instead should have taken a larger share
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