- What is Care.com, and how does Care.com work?
- How does Care.com make money?
- Premium Subscription Plan
- Care HomePay
- Care for Business (B2B)
- Recruiting and Marketing Solutions
- Care.com Subsidiaries, Acquisitions, and Exits
- Care.com profit and revenue
- What is the Care.com business and revenue model?
- Care.com funding, net worth, and valuation
How does Care.com make money if it’s free to use? Here is a full, in depth, breakdown of their four (4) revenue streams and the different products and services they offer, as well as the Care.com business model, their profit and revenue, and how Care.com works.
What is Care.com, and how does Care.com work?
Care.com is an online marketplace that offers sitting services such as childcare, special needs care, senior care, pet sitting, and more.
Founded in 2006 by Sheila Lirio Marcelo, Care.com began trading on the New York Stock Exchange (NYSE) on January 24, 2014, under the ticker symbol “CRCM” before later delisting after IAC completed its acquisition of the company on February 11, 2020.
Since that time, Care.com now has more than 32.9 million members across 20 countries on its platform.
How does Care.com work? To use Care.com, both caregivers and care seekers must first sign up for an account by either visiting their website; or by downloading the mobile app on the Apple App Store or Google Play store.
Once signed up, users can begin browsing for the type of sitting services they need by first clicking on the “Post a Job” tab. There, care seekers will then need to fill out some job description details such as the location of the job, type of care needed, the schedule and hours required for the caregiver to work, as well as the start date.
After that’s done, care seekers can tap the “Share Your Needs” button to post the job to the marketplace for all caregivers to view and apply. And if a user wants more marketplace features, they can upgrade to Care.com’s paid subscription plan, discussed below.
Some of Care.com’s competitors include Sittercity, Rover, and other sitting service marketplaces.
How does Care.com make money?
According to Care.com, Care.com has over 32.9 million members across 20 countries using its service. So how does Care.com make money off of all these members?
Below is a breakdown of how much money Care.com makes and its revenue model. Including all revenue streams and how much they charge for their services.
Here are the 4 ways of how Care.com makes money (in 2022):
Care.com has a revenue model that makes money in four (4) ways; through their premium subscription service, Care HomePay, Care for Business (B2B), and marketing solutions.
#1. Premium Subscription Plan
Care.com makes most of its money from the subscription fees paid by both care seekers and caregivers.
Though the Care.com platform is free to use, it is limited in regards to what perks the paid premium subscription offers such as messaging caregivers, paying caregivers through the site, background checks, the ability to chat with support, and more.
One thing to make note of is that Care.com has over 32.9 million members, and it’s unclear how many of those are paying members.
- $38.95 per month
Note: Care.com charges both the caregivers and the care seekers a (optional) monthly subscription fee, known as a two sided marketplace.
#2. Care HomePay
Another subscription service Care.com offers and makes money from is a service they call HomePay.
HomePay is a payroll and tax preparation service that can serve useful to both care seekers (families) and caregivers. Care seekers can use the service to pay caregivers as employees through the Care.com platform using the payroll service. While caregivers can use it for the tax preparation services.
- $75 per month
Note: All of Care.com’s subscription services are tailored toward both care seekers and caregivers.
#3. Care for Business (B2B)
Care.com also makes money on the B2B (business to business) side of things with Care for Business.
The way it works is Care.com offers and partners with employers so they can offer backup care services to their employees as an employee benefit (a perk of working for them). Some of those employers include notable companies such as Facebook, Twitter, Toyota, and more.
Note: Companies partner with Care.com so they can offer Care’s sitting services to their employees as an employee benefit.
#4. Recruiting and Marketing Solutions
Lastly, Care.com makes the rest of its money from what they call “recruiting and marketing solutions”.
Recruiting and marketing solutions, according to page 4 of Care.com’s 2018 Form 10-K, are tailored toward care related businesses – “such as day care centers, nanny agencies, and home care agencies – that wish to market their services to Care.com’s care seeking families and recruit Care.com’s caregiver members.”
Care.com Subsidiaries, Acquisitions, and Exits
Aside from Care.com being acquired by IAC for $500 million, Care.com has had its own fair share of acquisitions as well.
To date, Care.com, Inc. has made a total of 8 acquisitions.
Care.com profit and revenue
Care.com’s last released annual report as a public company was in 2018 where they reported $192.26 million in revenue. Which you can find here in the SEC’s archives.
Since that time, Care.com has not released any official reports in regards to company earnings.
Note: Because IAC/InterActiveCorp, the parent company of Care.com, is a publicly traded company, under the Securities Exchange Act of 1934, they must file continuous financial filings with the U.S. Securities and Exchange Commission (SEC). You can find all of IAC’s publicly released financial reports, including annual reports, through IAC’s investor section on their website.
What is the Care.com business and revenue model?
Care.com makes money through a few revenue models that they combine within their company, they are:
- Subscription business model
- Two sided marketplace business model
- Advertising based business model
- Freemium (Upselling) revenue model
- Business to business (B2B) revenue model
- B2B2C (partnerships) revenue model
- Mergers & acquisitions (M&A) revenue model
Care.com funding, net worth, and valuation
According to Care.com’s Crunchbase profile, Care.com has raised $156.9 million over 7 rounds.
On February 11, 2020, Care.com was acquired by IAC for roughly $500 million, per reports.