Gig Economy – Techweek https://techweek.com Fri, 07 Dec 2018 15:37:44 +0000 en-US hourly 1 https://wordpress.org/?v=6.8.3 Shyft – An App to Help Workers Swap Shifts https://techweek.com/shyft-an-app-that-helps-workers-swap-shifts/ https://techweek.com/shyft-an-app-that-helps-workers-swap-shifts/#respond Fri, 30 Nov 2018 11:46:53 +0000 https://techweek.com/?p=34002 Rescheduling shifts is not just a waste of time—it’s a waste of money too. That’s what Brett Patrontasch saw when he opened up a small house painting company, and it was a problem he wanted to solve. Coordinating schedules and shift swapping was taking up time, not to mention energy. The answer was simple: Employees needed […]

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Rescheduling shifts is not just a waste of time—it’s a waste of money too. That’s what Brett Patrontasch saw when he opened up a small house painting company, and it was a problem he wanted to solve. Coordinating schedules and shift swapping was taking up time, not to mention energy. The answer was simple: Employees needed an app. That’s how Shyft was born.

Shyft, a Seattle-based startup founded in 2015, seeks to solve this problem. It’s a mobile app where employees can shift-swap and coordinate schedules in a quick and transparent way. With 12,000 Starbucks employees using it and a partnership with Gap Inc., workers must be seeing its value. With $8.1M in funding, investors clearly see it too.

Origins

Before becoming the co-founder of Shyft, Brett Patrontasch founded a small house painting company called Scholars at Your Service, one that employed around 250 students at a time. He soon realized even trying to coordinate the shift schedule of a small company was a logistical nightmare –workers were using every method to communicate, from Facebook to texts. In all the confusion managers were wasting time, while employees were getting too many, or too few shifts.

If a small company was having this problem, Patrontasch figured, the challenges of global corporations must be worse. So he brought together a team of friends from the University of Toronto: CTO Daniel Chen, Lead Mobile Developer Kyle Liu, and Director of Growth Chris Pitchford.

The team had formerly worked on another workspace app called Coffee Mobile, but Patrontasch realized the app was too top-down, focusing on executive needs rather than those of employees. With Shyft, Patrontasch and his team sought to correct the issue, making an app that was useful to employees first, management second.

The problem

According to a census analysis, about two out of every five American workers are shift workers–about six million people. All of those individuals need to swap shifts, and all of them have no better means of doing so than a series of disparate messaging apps.

So why does shift-swapping lose company money? Shyft’s argument is this: For every call out looking for a shift swap a certain amount of time is lost while management and employees seek to reschedule shifts. Often enough, employees won’t be able to fill it, resulting in a no-show, which is a loss for employees and management alike. Shyft makes its argument using a calculator to tell you how much money you may be losing for this very issue.

How Shyft works

Shyft_in_use

Photo credit: Shyft website

The app is free to download: You sign in as a ‘worker’ or ‘manager’ first. Once that’s done you’re asked to enter the region and the store you work at, and this adds you to a channel where you can communicate with all other employees at that store. In the case of managers you’re able to control the channel, approve or disapprove of shift swaps. But workers can also use the app to simply communicate amongst themselves.

According to Shyft 12,000 Starbucks workers, 7,500 McDonald’s workers, and 3,500 Old Navy users have signed up so far. Because these are all corporations employees are able to swap shifts across the whole country, not just their own store. The app includes a number of features: For instance, someone trying to unload an unpopular shift—say, during the holiday season—can offer a financial incentive. This helps users not only control their schedules but to pick up some extra cash.

How Shyft compares

Shyft helps users control schedules and pick up extra cash – for free.

This isn’t the only app created to solve shift management, but it certainly is the cheapest. Shyft’s competitive advantage is twofold: it’s not top-down, and it’s free. Other apps, such as Deputy and When I Work is manager focused, marketing itself towards managers looking to better manage their team. But Shyft can be downloaded by anyone–its power is contingent on how many others freely download it, even though it has features geared towards management. Most of these apps work from a monthly subscription (around $2), while Shift Worker costs around a dollar and can only be downloaded on Google Play. These are small prices (albeit they can balloon up annual budgets for companies with large workforces), but in the age of the internet, even a small paywall can be a real detriment towards an app’s initial success.

Who’s involved?

Shyft was picked up by Techstars, a Boulder-based accelerator with a market cap in the multi-billions.The Seed investment of $1.5M was sourced from such seasoned tech veterans as Heather Redman, venture capitalist group Madrona, as well as Russel Okung of the Seattle Seahawks and Edgar Martinez of the MBA. An impressive $6.5M was raised in its first funding round, led by Ignition Partners and Madrona, with managers from both groups joining Shyft’s board of directors.  So far Shyft has partnered with Gap Inc., providing its services to workers from its many retail stores: Old Navy, Athleta and Banana Republic. The fact that Shyft is the 2018 Gold Prize Winner of the Seattle Business Magazine’s Tech Impact Award for Emerging Companies has also generated a significant amount of buzz.

With 4.7 rating in the app store it looks like Shyft is doing a great job helping workers swap shifts fast. With Starbucks spokesmen denying any knowledge of the app, it’ll be interesting to see whether or not this change is embraced by management. But with thousands of users already, it’s possible bosses won’t even need to know.

 

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Hello Alfred is Building the Home of the Future https://techweek.com/hello-alfred-housekeeping-newyork-startup/ https://techweek.com/hello-alfred-housekeeping-newyork-startup/#respond Sat, 13 Oct 2018 09:11:04 +0000 https://techweek.com//uncategorized/https-techweek-com-hello-alfred-housekeeping-newyork-startup/ Eeva Marja Lee’s day begins with shopping for groceries, picking up laundry, and dropping off dry cleaning. But these are not her own domestic obligations, they are her clients’. Lee works for Hello Alfred, a New York City-based home service startup that recently raised a $40M Series B financing led by DivcoWest, Invesco, and others. […]

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Eeva Marja Lee’s day begins with shopping for groceries, picking up laundry, and dropping off dry cleaning. But these are not her own domestic obligations, they are her clients’. Lee works for Hello Alfred, a New York City-based home service startup that recently raised a $40M Series B financing led by DivcoWest, Invesco, and others.

With an army of professionals like Lee, Hello Alfred has made it its business to clear busy people’s calendars by taking chores off their schedule. It brings home managers, called Alfreds, to the middle-class who will do everything your home requires except babysitting, petcare and moving cars.

The company was launched by Marcela Sapone and Jessica Beck after they won the TechCrunch’s Startup Battlefield at Disrupt in 2014.

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Picture Credit: Hello Alfred

Hello Alfred – the consummate home handler

The founders met at Harvard Business School, where they had arrived after stints at McKinsey & Co. While studying together, they decided to split the cost of a home manager to handle their daily chores.

“We found a woman through Craigslist to visit once a week, bring our groceries, pick up and drop off our dry cleaning, and keep our homes tidy,” the founders told Techweek in an email interview. “When our neighbors learned about it, they asked if they could participate as well. It became clear that we all needed help in order to focus our time and energy on doing the things that were important to us.”

Soon, this quick-fix transitioned into a business idea.  

To better understand their potential customers, the founders then looked for requests for recurring help on Craigslist and TaskRabbit and “found 35,000 recurring requests for help every month.” It was after that they set up an account on Craigslist and started running errands for customers. This initial experience taught them that offering a package of services was better than being focused on a single task like cleaning or shopping which other startups were already providing.

“We positioned Hello Alfred,” the founders say, “as an aggregated service platform that gave customers one neck to choke—if they didn’t like what they were getting, we were responsible for fixing it.” But there was one hindrance in the founders’ dream. 

Notecard_Hello_Alfred

Picture Credit: Hello Alfred

Not Midas or Medusa, but a human touch

How would they get the people to open the door or trust them with their keys?

By painfully and slowly building trust. Sapone and Beck were the first Alfreds, the professionals who picked the dry cleaning and emptied the trash of their New York clients homes. However, the desire to win customers’ trust, the founders say, was the reason why they “decided to hire Alfred Home Managers as full W-2 employees, rather than using 1099 freelance contractors” and encouraged them to take ownership of their tasks in each home.

Initially, Hello Alfred relied on referrals to gain consumers. However, the founders attribute retention to “the fact that the same Alfred would provide service, week after week, [helping] build trust with the customers.”

Building that personal connection has been a big part of Hello Alfred’s strategy. This has stuck even as the startup pivoted from being a direct-to-consumer service to a business-to-business enterprise in 2017. “This not only doubled our pipeline of development clients,” the founders say, “it enabled us to scale and grow our footprint in a steady and sustainable way.”

Despite competitors like TaskRabbit, Handy, HouseCall, the startup has grown speedily, spreading from New York to numerous cities in the US and has plans to be available in 100,000+ residential units by the end of 2018. It has, the founders say, partnered with property owners such as Related Rentals, Hines, Invesco, RXR, and Jamestown among others. The model is similar to startups like Ollie where residents don’t pay any additional prices for the services but the costs are included in their monthly rent.

Hitting home

But Hello Alfred isn’t stopping there. Now that it has its customers’ trust and their keys, the founders say that the startup wants to take housekeeping further in the $400Bn home services market. With the help of its professionally trained Alfreds, the startup uses its human touch to not just tidy up the place but ensure that nothing–neither your groceries to toothpaste–runs out. In other words, its Alfreds create a home that, from the resident’s perspective, replenishes itself.

It has also created a platform which the founders call “In-Home Commerce”a marketplace so that residents can purchase products from local brands and retailers, sell unwanted clothing or even make donations to a charity. It has also announced a partnership with August’s smart lock technology for each home they service. If residents choose to replace their old-fashioned keys with the smart lock technology, Hello Alfred will install it for them.

The startup has consistently popularized its human element, that its Alfreds develop a relationship with the residents and look after them. For instance, the startup’s blog discusses how anyone who spends time in another’s house is bound to familiarize themselves with a few things. “Maybe you’re seeing someone new and aren’t spending as much time in your apartment anymore…Hello Alfred picks up on those details and “does something about it.”  This is perhaps why the founders think of “Alfreds as detectives, who use their attention to detail and intuition to surprise and delight their customers and learn to anticipate their needs.” One way Hello Alfred does it, the blog explains, is by small gestures like “leaving handwritten notes” or “removing the plastic from the dry cleaning before placing it in the closet”.

While the startup claims that each employee is chosen after thorough background checks, reservations among clients can be common. However, of all the reviews on Yelp, some have praised the service while others have called out their assigned Alfred’s inefficiencies. But so far, there hasn’t been a complaint of breach of trust or privacy. In fact, Alfred’s business has been growing. It has been operationally profitable since its launch and has, according to Crunchbase, raised $52.5M to date.

A big reason for this success is one most others ignore: “We treat the Alfreds as a our primary customers,” the founders say, “providing them with the tools and capabilities to help them keep the customers happy”.

HelloAlfred

Picture Credit: Hello Alfred

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