- What is TaskRabbit, and how does TaskRabbit work?
- How does TaskRabbit make money?
- Service Fees (Commission)
- Trust and Support Fees
- Registration Fees
- TaskRabbit’s Subsidiaries, Acquisitions, and Exits
- TaskRabbit’s profit and revenue
- What is the TaskRabbit business and revenue model?
- TaskRabbit’s funding and valuation
How does TaskRabbit make money? Here is a full, in-depth, breakdown of their three (3) revenue streams and the different products and services they offer, as well as the TaskRabbit business model, their year-over-year revenue, and how TaskRabbit works.
What is TaskRabbit, and how does TaskRabbit work?
TaskRabbit is a marketplace that connects freelancers with local jobs and tasks, including everything from cleaning, moving, delivery, and handyman work.
How TaskRabbit works is: Once a freelancer, or “tasker”, applies and is approved by TaskRabbit, they can accept and request work in their area through the app.
Founded in 2008 by Leah Busque, TaskRabbit has since completed more than 4 million tasks for over 1.5 million clients on its platform and was acquired by IKEA for an undisclosed amount in September 2017.
Some of TaskRabbit’s competitors include Thumbtack, Angie’s List, Fiverr, Upwork, and other gig economy marketplaces.
How does TaskRabbit make money?
TaskRabbit has over 140,000 taskers according to the latest official numbers released in their April 2019 press report – operating in the United States, United Kingdom, Canada, France, Italy, Germany, and Spain.
And to add to that has completed more than 4 million tasks for over 1.5 million clients to date. So how does TaskRabbit make money off of all those tasks, taskers, and clients?
Below is a breakdown of how much money TaskRabbit makes and its revenue model. Including all revenue streams and how much they charge for their services.
Here are the 3 ways of how TaskRabbit makes money (in 2021):
TaskRabbit has a revenue model that makes money in three (3) ways – service fees, trust and support fees, and registration fees.
#1. Service Fees (Commission)
TaskRabbit makes money by taking a service fee, or “commission”, from their taskers.
The way it works is: Once a client books a tasker on the TaskRabbit platform, TaskRabbit will then take a 15 percent commission fee on the total price of the job when it’s paid out.
More than 4 million tasks have been booked through the platform over the past decade and according to TaskRabbit’s 2020 Fact Sheet, “Taskers have collectively earned more than $100 million” in FY 2019 alone.
TaskRabbit Service Fee:
- 15% of the total price
#2. Trust and Support Fees
TaskRabbit also charges the clients booking the taskers a Trust & Support fee. These fees are non-negotiable and applied to every transaction.
Trust and Support Fees are for, as TaskRabbit says, (1) supporting The TaskRabbit Happiness Pledge, (2) operational and safety measures to protect users, (3) investing in their Customer Support, and (4) equipping themselves with the tools, team training, and channels to support clients getting their task completed.
TaskRabbit Trust and Support Fee:
- 7.5% of the total price
Note: Not only does TaskRabbit charge the taskers a 15% commission fee, but also charges the clients a 7.5% fee. So TaskRabbit is really getting 22.5% of every transaction, or “task”, on the platform.
#3. Registration Fees
Every time a freelancer applies to become a tasker on TaskRabbit, TaskRabbit charges a non-refundable registration fee with each application.
According to TaskRabbit’s April 2019 press report, there were over 140,000 taskers currently registered on TaskRabbit. That means, by TaskRabbit’s numbers – they made at least $3.5 million off application fees alone.
TaskRabbit Registration Fee:
- $25 registration fee
TaskRabbit’s Subsidiaries, Acquisitions, and Exits
Aside from TaskRabbit being acquired by IKEA for an undisclosed amount in September 2017, TaskRabbit has also acquired 2 companies of its own.
TaskRabbit’s profit and revenue
IKEA, the parent company of TaskRabbit, has not released any official numbers of TaskRabbit’s revenue.
*Estimate: TaskRabbit reported having over $100 million in transactions in a 2020 press report and TaskRabbit takes a combined 22.5% of every transaction between the service fees and trust and support fees. That would put TaskRabbit’s estimated revenue over $22.5 million in 2019, not including the revenue they received from registration fees.
What is the TaskRabbit business and revenue model?
TaskRabbit makes money through a few revenue models that they combine within their company, they are:
- Commission based business model
- Fee-for-service (FFS) business model
TaskRabbit’s funding and valuation
According to TaskRabbit’s Crunchbase profile, TaskRabbit raised $37.7 million over 7 rounds before being acquired by IKEA in September 2017 for an undisclosed amount.