TaskRabbit competitor to expand beyond Austin

Sep 17, 2013
Austin Business Journal

Short-term job listing service NeedTo Inc. is expanding nationally after 18 months of beta testing

The Austin-based company that launched in 2011 has attracted more than 7,000 users and brokered jobs worth $316,972 since beta testing began in March 2012. Company officials didn’t provide the names of the cities where it was expanding or timelines

The Austin Business Journal reported on the business in March 2012 and its plan to take on industry leaders such as Craigslist Inc., Zaarly Inc. and TaskRabbit Inc.

Founder Wade Floyd started NeedTo when he was looking for a real estate broker but wanted to avoid the haggling. The online marketplace enables users to enlist workers for jobs such as mowing a lawn, picking up dry cleaning or having a roof fixed

Posting a job is free and cash transactions are free. But NeedTo generates revenue by charging a 10 percent transaction fee when customers use a Paypal account. Three percent is collected by Paypal and 7 percent by NeedTo. The average job value is $40 to $50, Floyd said

NeedTo, which is funded by Floyd, operates with two full-time employees and 20 interns. NeedTo also donates 10 percent of its net revenue to job-training programs in addition to a partnership with American YouthWorks in Austin

Last year, competitor TaskRabbit disclosed plans to bring its online service to Austin, promising hundreds of temporary jobs. More than 3,000 workers, or taskrabbits, operate nationally and the most active is netting up to $5,000 per month from the service, according to the company

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