- What is Rover, and how does Rover work?
- How does Rover make money?
- Service Fees (from Booking Total)
- Revenue from Background Checks
- Selling Products (The Rover Store)
- Affiliate Revenue
- Rover Subsidiaries, Acquisitions, and Exits
- Rover profit and revenue
- What is the Rover business and revenue model?
- Rover funding and market cap
How does Rover, or Rover.com, make money? 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 Rover business model, their year over year revenue, and how Rover works.
What is Rover, and how does Rover work?
Rover is a pet care service that connects pet parents with pet sitters and walkers through their online marketplace.
Founded in 2010 by Greg Gottesman, Aaron Easterly, and Philip Kimmey, Rover began trading on the NASDAQ on August 2, 2021, under the ticker symbol “ROVR”.
Since that time, Rover has had more than 3 million pet parents and over 660,000 pet care providers on its platform, making Rover the largest online marketplace in the world for pet care based on gross booking value (GBV).
How does Rover work? To use Rover, users must first sign up for an account by simply visiting their website; or by downloading their mobile app on the Apple Store or Google Play store.
Once signed up, pet parents can use the search filter on the homepage to find pet sitters by entering in the type of service they’re looking for while they’re away, the dropoff / pickup dates, “boarding near” zip code, and dog size (if applicable). Once they find a sitter they like, the users can send them a message, schedule a meet & greet, and secure the booking by paying through Rover’s platform.
Some of Rover’s competitors include Wag and other pet care marketplaces.
How does Rover (Rover.com) make money?
According to Rover, Rover has had more than 3 million pet parents and over 660,000 pet care providers on its platform since its founding back in 2010.
So how does Rover make money off of all these users?
Below is a breakdown of how much money Rover, or Rover.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 Rover makes money (in 2022):
Rover has a business model that makes money in four (4) ways; service fees, revenue from background checks, affiliate revenue, and selling products through their e-commerce store.
#1. Service Fees (from Booking Total)
Rover makes most of its money by collecting a service fee on every booking facilitated through the Rover platform.
According to page 69 of Rover’s 2021 Form 10-K, Rover had facilitated $521.9 million in gross booking volume (GBV) in 2021. Of which, Rover receives a combined service fee of 20% to 27% from all of it.
How much does Rover charge and cost?
- Pet Parents pay a 5% to 7% service fee of the booking total
- Pet Care Providers pay a 15% to 20% service fee of the booking total (depending on if their account was created on or before March 1, 2016)
Note: Rover charges both the pet care providers and the pet parents a service fee, giving Rover a combined 20% to 27% of each booking total.
#2. Revenue from Background Checks
Another way Rover, or Rover.com, makes money is by charging their pet care providers to get a background check before being allowed to book work on the site.
As noted above, Rover has over 660,000 pet care providers on its platform. And each of them had to and have to pay for a mandatory background check, which goes to Rover.
There are two (2) types of background checks sitters can pay for; Basic and Enhanced. Though only one (1) is required. You can see how much each one costs below.
Rover Background Check Cost:
- Basic: $10
- Enhanced: $35
Note: Rover requires all pet care providers to get a background check.
#3. Selling Products (The Rover Store)
In addition to collecting revenue from service fees and background checks, Rover also makes money by selling its own products through its e-commerce store, The Rover Store.
Here, they sell pet related products such as collars, leashes, dog toys, and more that range in price from $3.50 to $224.99.
#4. Affiliate Revenue
Lastly, Rover makes money from its affiliate revenue.
How does Rover make money from its affiliates? Rover makes money whenever a Rover user reads one of their blog posts and clicks on a link and buys a product from a sponsored affiliate. Though it’s unclear how much money Rover receives per purchase.
Rover Subsidiaries, Acquisitions, and Exits
To date, Rover Group, Inc. has made a total of 3 acquisitions, 1 investment, 1 lead investment, and 1 successful exit.
Rover profit and revenue
In 2021, Rover reported $109.8 million in revenue.
Note: Because Rover Group, Inc. 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 Rover’s publicly released financial reports, including annual reports, through Rover’s investor section on their website.
What is the Rover business and revenue model?
Rover, or Rover.com, makes money through a few revenue models that they combine within their company, they are:
- Fee for service (FFS) business model
- Two sided Marketplace business model
- Transaction based business model
- Affiliate business model
- B2B2C (partnerships) business model
- Mergers & acquisitions (M&A) business model
Rover funding and market cap
According to Rover’s Crunchbase profile, Rover has raised $360.9 million over 12 rounds and has a market cap of $866.73 million as of May 2022.