Earlier today, Re/code reported that Homejoy will stop operations at the end of this month in the wake of multiple employee reclassification lawsuits. Google will be employing 20 Homejoy’s engineering team to build the company’s technology for matching local professionals such as lawn mowers, painters, plumbers, cleaners and the like — with online users, according to sources.
Google confirmed that it was hiring a portion of Homejoy’s staff, but declined to talk much about it but it’s likely the company will deploy their expertise inside search. Homejoy didn’t respond to request for comment. Sources said Homejoy’s current platform will be shuttered.
Homejoy had amassed a $40 million war chest in funding, from investors including Google Ventures. The startup’s primary business involves taking a cut of the transaction of the home service connections it orchestrated.