{"id":1244,"date":"2015-10-04T20:49:35","date_gmt":"2015-10-05T00:49:35","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-digit\/submission\/care-com-a-two-sided-marketplace-for-all-your-care-needs\/"},"modified":"2015-10-04T20:50:57","modified_gmt":"2015-10-05T00:50:57","slug":"care-com-a-two-sided-marketplace-for-all-your-care-needs","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-digit\/submission\/care-com-a-two-sided-marketplace-for-all-your-care-needs\/","title":{"rendered":"Care.com: a two sided marketplace for all your care needs"},"content":{"rendered":"

The Company:<\/strong>
\nCare.com is an online marketplace that connects babysitters, nannies, caregivers and dog walkers with families seeking these services.\u00a0 Their mission is to \u201cto improve the lives of families and caregivers by helping them connect in a reliable and easy way\u2026In providing families a comprehensive marketplace for care, we are building the largest destination for quality caregivers to find fulfilling employment and career opportunities globally.\u201d<\/p>\n

As of December 2014, Care.com has 14.1 million members in 16 different countries (7.9M families and 6.2M caregivers), this is up 46% annually; revenue is $116.7M, up 43% annually.\u00a0 The website lists current members at 16.5M.\u00a0 In addition to providing a service marketplace, care.com also operates Citrus Lane and Big Tent which offer child merchandise and a platform for parenting groups and forums respectively.<\/p>\n

Value Creation:
\n<\/strong>Care.com creates value for the families by providing them with safe, reliable and convenient access to care for their loved ones.\u00a0 They can specify specific times and requirements (such as driving and language), read reviews and see background checks.\u00a0 Families are guaranteed a response within 3 days.\u00a0 Value is created for caregivers by providing them with a flexible way to find a job that fits their schedule and financial needs without having to know someone in the neighborhood or be recommended by a friend.\u00a0 In addition, it creates value by allowing for payment and nanny tax services through the website.<\/p>\n

Value Capture:
\n<\/strong>Care.com captures value is several ways: first, similar to the LinkedIn model, Caregivers can subscribe to an upgrade that provides additional benefits such as (in the case of the caregiver) free preliminary background checks, ability to filter job searches, proactively reach out to families and receive priority status for jobs \u00a0(see below).<\/p>\n

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In addition, you can elect to do a background check of varying degrees for a $9-$59 one-time charge.\u00a0 Care.com captures value from the families through a subscription model as well.\u00a0 Care.com also captures value through its products via its Citrus Lane platform<\/p>\n

Network Effects:
\n<\/strong>Care.com benefits primarily from indirect network effects.\u00a0 These are created in several ways:<\/p>\n