[ibimage==34449==Medium==none==self==ibimage_align-left]
When you’ve got a broken pipe in your home, you’ve probably also got a headache. It's unfortunate that the solution, calling a plumber and trying to not get price gouged, often makes your head throb all the more. Sadly, that's how it has been for years. Sherman Oaks-based startup SERVIZ wants to change that.
SERVIZ, an on demand home services website, has just raised a $12.5 million
Series B round led by PointGuard Ventures with participation from Andy Sheehan, Jeff Stibel, and SERVIZ founders, Zorik Gordon and Michael Kline. The site has raised $20 million to date, and is trying to add transparency and quality control to the home services industry.
“We believe the market for home services is very inefficient and in a sense broken,” said Zorik Gordon, co-founder and CEO. “Angie’s List, Google and Yelp they’ve made it a little better, but really you’re on your own. It’s a tremendous amount of work.”
What Gordon is referring to is the distrust that exists between home service providers, like plumbers, electricians, and handymen, and their clients. Because prices are hidden and seemingly arbitrary, many customers believe they are getting gouged for repairs. SERVIZ has built its whole business model around undercutting that price guaging.
“Installing a toilet is installing a toilet, it takes a certain amount of labor and material,” said Gordon. Service providers, “they make up a huge markup on materials and labor.”
SERVIZ claims to charge significantly less than traditional home service providers and lists all its prices online. Services for hire include handyman, plumbing, carpet cleaning, appliance repair, and electrical. Customers can book, pay for and review services on the company’s website.
“Because we are controlling the end-to-end process we can fundamentally make a better consumer experience,” said Gordon.
[ibimage==34450==Medium==none==self==ibimage_align-right]
To make this all work, the company has contracted with independent home service providers, vetted them and then connected them with customer demand on their website, which they generate via online marketing (Zorik Gordon previously was the CEO and founder of Reach Local, an online marketing agency for small businesses).
“We partner with the independent providers that are really good but are struggling,” said Gordon. “We are a great opportunity for these guys to fill their excess capacity.”
Because the company operates on “much slimmer margins,” it is looking to make money at scale. Currently just operating in Los Angeles and Orange County, this latest round of capital was raised to expand to 20 new regions in the next 12 to 24 months. The startup also plans to expand to new home services, possibly to HVAC repair and pest control. Apparently, those services are ripe for disruption too.
“Things that aren’t broken don’t tend to get disrupted,” said Gordon. “We’re just trying to make this into a 21st century transaction.”
Have a tip for us or know of a company that deserves coverage? Email us via [email protected]
