In 2014, Amazon did what Amazon is known for and launched a brand new company called Amazon Services, a market for business and home search professionals, in competition with HomeAdvisor and Angie’s Lists.
In 2015, Angie’s List was found striving, as growth stopped and the quarterly results fell, and stock prices fell to a low of $3.73. The next year, with no real growth on the site and stock levels hovering around $5, Angie’s list accepted the offer for acquisition from its most hated competitor HomeAdvisor and by the end of 2017, the two companies were merged.
In the same period, HomeAdvisor also competed with Amazon, as well as with its competitor Angie’s List. And it flourished, says CEO Chris Terrill.
Terrill also stated that between 2010 and 2014, before Amazon started to tap the market, HomeAdvisor had around 6 Million requests for service a year. In 2015, Amazon service requests grew by around 50% to nearly 10 Million and revenue increased to $297 Million. It grew to about 35% a year until 2016 and 2017 each.
In the meantime, Amazon also increased its internal service, but it is difficult to say how much. Amazon does not publish the revenue of the unit and a report regularly. In 2017, Amazon reported that Home Services was available in 50 cities, offered more than 1,200 service providers in 60 professions, and customer orders increased by more than 200%.
“Many of these technology companies have the technical point of view, which says: “Let’s just do it with technology, we do not need a sales team; we do not need an operational group.” And then they have an awakening that, “They do not know about how to use the platform, and do it themselves.”
The e-commerce giant looks all set for the festive seasons, as it fortifies its back-end services with plans to expand its logistics team and set up more five fulfillment centers in India.