Mumbai-based on demand home services home and services startup Taskbob shutdown yesterday, although the company did not provide a specific reason. At last count, the company claimed to have 1 lakh users in Mumbai, with 800 to 1,000 bookings per day.
(1/4) Dear Taskbob Family, Due to unforeseen circumstances, Taskbob will be shutting down its operations as of 19th January.
— Taskbob (@taskbob) January 19, 2017
At the time, in February last year, the company had raised $4.5 million from Ivy Ventures, Orios and Mayfield for expanding its presence in multiple markets. The startup had even acquired Bangalore-based Zepper for an undisclosed amount to expand to the city in 2015, after having raised $1.2 million in funding the same year. Interestingly, according to a Bloomberg report, TaskBob only got the first tranche of its second round of funding, amounting to about 50% of the $4.5 million.
The company will continue to list its verified service professionals on the mobile app, although it’s not clear for how long this will be maintained. According to OfficeChai, the company has been firing employees for a while now, who were told the company would shut down in December last year. The report suggests the shutdown was caused due to low margins in the services sector.
The services sector is a notoriously low margins game – UrbanClap founder Abhiraj Bhal had said last year that the company spend Rs 300-400 to acquire each customer. Most of the currently players in the services space are companies with much deeper pockets like Amazon, Quikr and even Facebook’s home services, while many of the smaller startups like MyWash, Melway, Near.in, FindYahaan and Chamak have gotten acquired or shut shop.