Following a report in the Wall Street Journal, Care.com deleted “tens of thousands” of unverified listings on the site. The investigation found providers without proper licensing and criminal histories.
A few issues ago we discussed that the next generation of marketplaces will differentiate itself and generate more margins by setting up a more managed marketplace.
A great example would be Craigslist and AirBnB: people have been putting rooms for rent on Craigslist long before AirBnB emerged but the platform didn’t control that in any way and you needed to trust the owner. Then AirBnB comes, takes that specific usecase and control of the entire user flow, providing (some level) of safety and security. These platforms can charge much more but they are also more limited in their offering because of how specialized their product is.
And there are some industries where trust is extremely important. People would just give one star to a bad Uber driver but they worry a lot about kids. Care.com was building an old-school marketplace in the industry where it’s not really smart.