Care.com

Last updated
Care.com, Inc.
Care.com Logo.svg
Type of business Subsidiary
Headquarters
Austin, Texas [1]
,
United States
Area servedUnited States, Canada, United Kingdom, Western Europe
Founder(s) Sheila Lirio Marcelo
Key peopleBrad E. Wilson (CEO)
Industry
Services
  • Child care
  • Senior care
  • Tutoring
  • Housekeeping
  • Pet care
Employees515 [2]
Parent IAC
URL www.care.com
LaunchedMay 2007;17 years ago (2007-05) [3]

Care.com is an online marketplace for families to find childcare, senior care, care for those with special needs, care for home, tutoring support and pet care. It is also a two-sided marketplace allowing caregivers to find jobs. Through its enterprise arm, Care for Business, the company provides employers with caregiving benefits for their employees. Enterprise clients include Google, Facebook, Starbucks and BestBuy. [4] [5] [6]

Contents

The company is headquartered in Austin, Texas, with offices in New York, Shelton, Berlin and Germany. [7] The company raised $111 million in venture funding [8] before going public on January 24, 2014. [9] Care.com was bought by IAC in February 2020 and is no longer publicly traded. [10] [11]

As of June 2023, Brad E. Wilson is the CEO of the company. [12]

History

Care.com was started by Sheila Lirio Marcelo, who came up with the idea when she had trouble finding care for her children and aging parents. [13] [14] The platform helps match families to caregivers fitting their needs, including nannies, sitters, senior care providers, pet care providers, tutors and housekeepers. [15] [16] [17] The company provides two kinds of membership, basic and premium and also allows families to book caregivers on demand. [18] [19] [20]

In 2007, Care.com raised $3.5 million in a Series A funding round from Matrix Partners with participation from Reid Hoffman. [21] Media reported allegations that Marcelo had met other companies in order to use their information to start Care.com, however, a spokesperson for Matrix denied any claims of unfair treatment. [22]

In 2012, Care.com launched in the United Kingdom and Canada, and acquired Berlin-based Betreut.de, giving it a footprint in more than a dozen Western European countries. [23] [24] In 2013, the Care.com app Karoo received a Webby Award under the social (handheld devices) category. [25] The app was later withdrawn. [26]

In November 2013, Care.com filed for an initial public offering with details of the IPO first revealed a month later. [2] [27]

Prior to its IPO in January 2014, Care.com had raised $111 million in funding from investors including Matrix Partners, [21] [28] Trinity Ventures, [29] [30] New Enterprise Associates, [31] USAA, [32] and Institutional Venture Partners (IVP). [33] In January 2014, the company reportedly planned to raise $85.6 million by offering 5.35 million shares, at $14 to $16 each, on the New York Stock Exchange under the symbol "CRCM". [2] [34] On January 23, 2014, 5.35 million shares were priced at $17. [35] Care.com went public on January 24, 2014, with shares priced at $22.55, up about 30 percent from its initial pricing. [36] It was the first Boston venture-funded technology company to go public in almost two years. [2]

In 2015, The Boston Globe reported about a couple defrauded by a nanny who had cleared the site's screening processes as well as other instances where families in the United States were suing the company for alleged negligence in properly conducting background checks. [37] In March 2019, The Wall Street Journal reported that the site listed day care providers as licensed in their state when they were not. [38] [39] Care.com responded by eliminating unverified childcare listings created automatically but never claimed by the facility owner from the site and strengthening member screening procedures. [40] [41] [39]

In December 2019, IAC announced its intention to acquire Care.com for $500 million and completed the acquisition on February 11, 2020, at which time Care.com ceased trading on the NYSE. As part of the deal, IAC executive Tim Allen became CEO of Care.com. [42] During the COVID19 pandemic, the company enabled several states, municipalities and non-profits to help frontline workers in those communities find care for their families. [43] [44] [45]

Publications

Since 2013, Care.com has released Cost of Care, an annual proprietary research report covering cost of child care trends borne by families in the US per year, along with cost-saving strategies for child care needs. [46] [47]

Since 2021, the company has also conducted research to understand the changing dynamics and impact of care in the workplace. [48]

Consumer Reviews

While some reviews on Care.com only show their positive reviews, other websites, such as the Better Business Bureau, show consumer reviews with an average score of 1.49 out of 5 stars. [49]

On Trustpilot, customer reviews have left an average rating of 2 out of 5 stars. [50]

Care.com has faced criticism for making it difficult for customers to leave reviews. Despite this, various independent review platforms reflect mixed to poor customer satisfaction scores.

On Trustpilot, customer reviews have left an average rating of 2 out of 5 stars. [51] On the Better Business Bureau (BBB) website, the company has also faced numerous customer complaints. [52]

On Sitejabber, the average consumer review is 3 out of 5 stars. [53] Similarly, on Glassdoor, the average employee review score is 3 out of 5 stars. [54] On Trustindex, they have a rating of 3 out of 5 stars. [55]

These reviews indicate that while some users are satisfied with Care.com, there are significant concerns and criticisms from a substantial portion of the user base.

Acquisitions

CompanyYear
Breedlove & Associates [56] [57] 2012
Besser Betreut GmbH. [58] 2012
Parents in a Pinch [59] 2012
Citrus Lane [60] [61] 2014
Town + Country Resources [62] 2018
Galore [63] 2018
Trusted [63] 2018
LifeCare [64] 2020

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References

  1. ↑ https://www.linkedin.com/company/care-com/about/ Archived 2023-07-03 at the Wayback Machine [ self-published source ]
  2. 1 2 3 4 Kyle Alspach, "Care.com sets IPO share range at $14-$16; could raise up to $86M Archived 2016-04-21 at the Wayback Machine ," Boston Business Journal, January 10, 2014.
  3. ↑ Om Malik, "Reid Hoffman invests in Care.com Archived 2011-12-03 at the Wayback Machine ," Gigaom, July 30, 2007.
  4. ↑ Serena Saitto & Lee Spears, “Care.com Said to Pick Morgan Stanley as Lead Bank for IPO Archived 2015-01-07 at the Wayback Machine ”, Bloomberg.com, August 7, 2013.
  5. ↑ Wiener-Bronner, Danielle (2018-10-09). "Starbucks announces new backup childcare benefits | CNN Business". CNN. Retrieved 2023-11-11.
  6. ↑ Siegel, Rachel (2018-12-17). "Meet the Best Buy employee who inspired the company's new child-care benefit". Washington Post. ISSN   0190-8286 . Retrieved 2023-11-11.
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  9. ↑ Jordan Graham, "Experts: Care.com IPO shows Boston’s Web savvy Archived 2014-01-25 at the Wayback Machine ," Boston Herald, January 24, 2014.
  10. ↑ SEC. "Care.com Inc 2020 Notice of termination of registration of a class of securities under Section 12(b) 15-12B". SEC.report. Retrieved 2020-12-18.
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  12. ↑ Mamtora, Manshi (2023-06-21). "IAC's Care.com and Ask Media make key management changes (NASDAQ:IAC) | Seeking Alpha". seekingalpha.com. Retrieved 2023-11-11.
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  29. ↑ James M. Connolly, "Care.com raises $25 million with insurer USAA as corporate VC Archived 2011-12-13 at the Wayback Machine ," Boston Business Journal, October 12, 2011.
  30. ↑ "Care.com, Inc. Obtains $9,999,900 New Financing Round Archived 2023-07-03 at the Wayback Machine ," Xconomy.com.
  31. ↑ Leena Rao, "Care.com Raises $20 Million To Connect You To Nannies, Babysitters And Caregivers Archived 2016-05-15 at the Wayback Machine ," TechCrunch, October 12, 2010.
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  33. ↑ Brian Womack, “Care.com Raises $50 Million in Fifth Round of VC Funding Archived January 5, 2014, at the Wayback Machine ,” Bloomberg Businessweek, August 7, 2012.
  34. ↑ Ben Fox Rubin, "Care.com Sets IPO Range at $14 to $16 a Share Archived 2016-03-11 at the Wayback Machine ," Wall Street Journal, January 10, 2014.
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  36. ↑ Russ Britt, "Care.com shares surge by a third on care finder’s first day of trading Archived 2014-01-27 at the Wayback Machine ," MarketWatch, January 24, 2014.
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  38. ↑ Grind, Kirsten; Zuckerman, Gregory; Shiflett, Shane (March 8, 2019). "Care.com Puts Onus on Families to Check Caregivers' Backgrounds—With Sometimes Tragic Outcomes" . The Wall Street Journal . Archived from the original on June 18, 2020. Retrieved July 2, 2020.
  39. 1 2 Liptak, Andrew (2019-03-31). "Care.com deleted 'tens of thousands' of providers after report found lax vetting procedures". The Verge. Archived from the original on 2020-11-07. Retrieved 2020-12-18.
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  43. ↑ "Governor Abbott Announces Care.com Initiative To Increase In-Home Child Care Access For Frontline Workers". gov.texas.gov. Retrieved April 6, 2020.
  44. ↑ Andersen, Travis (April 21, 2020). "Five takeaways from state's closure of schools for the rest of the academic year". BostonGlobe.com.
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  47. ↑ Ceron, Ella (9 March 2023). "Companies Eye Cutting Benefits for Working Parents as Recession Looms". Bloomberg.com.
  48. ↑ "Care.com Reports That Investing in Family Care Benefits Remains Strong Despite Employer Budget Cuts". www.businesswire.com. 9 March 2023.
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  50. ↑ "Care.com Reviews". Trustpilot. Retrieved 2024-05-19.
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  53. ↑ "Care.com Reviews". Sitejabber. Retrieved 2024-05-19.
  54. ↑ "Care.com Reviews". Glassdoor. Retrieved 2024-05-19.
  55. ↑ "Care.com Reviews". Trustindex. Retrieved 2024-05-19.
  56. ↑ Chris Reidy, “Care.com acquires Breedlove & Associates Archived 2016-05-06 at the Wayback Machine ,” Boston Globe, August 21, 2012.
  57. ↑ Kyle Alspach, “Care.com acquires payroll biz Archived 2013-11-24 at the Wayback Machine ,” Mass High Tech, August 21, 2012.
  58. ↑ Brian Womack, “Care.com Acquires Besser Betreut as Website Expands Internationally,” Bloomberg.com, July 11, 2012.
  59. ↑ Chris Reidy, “Care.com buys Parents in a Pinch Archived 2016-03-04 at the Wayback Machine ,” Boston Globe, January 15, 2013.
  60. ↑ "Care.com acquires Citrus Lane Archived 2015-10-03 at the Wayback Machine ", Care.com, July 17, 2014.
  61. ↑ "Care.com shutting down e-commerce firm it previously acquired Archived 2017-06-23 at the Wayback Machine ", bizjournals.com, October 29, 2015.
  62. ↑ "Care.com Acquires Town + Country, Galore and Trusted". July 30, 2018. Archived from the original on 2021-04-16. Retrieved 2021-04-16– via www.bloomberg.com.
  63. 1 2 "Acquisitions by Care.com". Archived from the original on 2021-04-16. Retrieved 2021-04-16.
  64. ↑ "IAC Traded Love for Luck With Care.com". October 20, 2020. Archived from the original on June 11, 2021. Retrieved June 11, 2021– via www.wsj.com.
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