// startup autopsy
HomeHero
The Uber for senior care was killed by one California labor ruling that reclassified all its caregivers.
regulationRegulatory Kill
Forced closure by regulatory action
| Founded | 2013 |
|---|---|
| Closed | 2016 |
| Country | USA |
| Sector | Marketplace |
| Founder | Kyle Hill, Mike Townsend |
// the model, blind
Evaluating only HomeHero’s profile at its peak — without knowing the outcome — the model ranked Unit economics as the #1 likely cause. Documented cause: Regulation.
Key Events Timeline
FOUNDING
Kyle Hill and Mike Townsend founded HomeHero in Los Angeles as a 1099 marketplace for senior caregivers.
FUNDING
Raised $20M Series A; expanded to San Francisco and over 2,000 freelance caregiver contractors on the platform.
REGULATORY ACTION
California Labor Commissioner ruled home care gig workers must be W-2 employees, raising HomeHero's labor costs ~30%.
SHUTDOWN
HomeHero shut down its caregiver marketplace in 2016, unable to sustain the business model under W-2 employment requirements.