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Care.com

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Care.com, Inc.
Type of businessSubsidiary
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]
ParentIAC
URLwww.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]

The company is headquartered in Austin, Texas, with offices in New York, Shelton, and Berlin.[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

[edit]

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, 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, but 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2013, the Care.com app Karoo received a Webby Award under the social (handheld devices) category.[25] The app was later withdrawn.[26]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, holding company 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 COVID-19 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]

In August 2024, Care.com reached an agreement with the US Federal Trade Commission to provide $8.5 million in refunds to caregivers whom the company allegedly deceived about the number of jobs available on its platform and their payment rates, as well as to families for whom the company made it difficult to cancel their memberships.[46] However, the company emphasized that the settlement is in no way a validation of the FTC’s claims but is meant to keep its focus on helping customers. Care.com also stated that it was prepared to litigate the case for several years if necessary.[47]

Publications

[edit]

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.[48][49]

Since 2021, the company has also conducted research to understand the changing dynamics and impact of care in the workplace.[50]

Acquisitions

[edit]
Company Year
Breedlove & Associates[51][52] 2012
Besser Betreut GmbH.[53] 2012
Parents in a Pinch[54] 2012
Citrus Lane[55][56] 2014
Town + Country Resources[57] 2018
Galore[58] 2018
Trusted[58] 2018
LifeCare[59] 2020

References

[edit]
  1. ^ https://www.linkedin.com/company/care-com/about/ Archived 2023-07-03 at the Wayback Machine [self-published source]
  2. ^ a b c d 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.
  7. ^ "Check out Care.com on Inc.com!". Inc.com. Archived from the original on 2020-12-06. Retrieved 2020-12-18.
  8. ^ 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.
  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.
  11. ^ Dumcius, Gintautas (December 20, 2019). "Care.com acquired for $500M, new CEO appointed". www.bizjournals.com. Archived from the original on 2020-12-26. Retrieved 2020-12-21.
  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.
  13. ^ Beth Pitts, "Sheila Marcelo, Founder & CEO, Care.com, on Raising $111m Archived 2013-12-13 at the Wayback Machine," The NextWomen magazines, February 5, 2013.
  14. ^ Susan Chaityn Lebovits, "Tapping Web of caregivers Archived 2016-03-05 at the Wayback Machine," Boston Globe, December 9, 2007.
  15. ^ Dan Kaplan, "Care.com, one-stop shop for child, pet, and elderly care Archived 2016-10-08 at the Wayback Machine," VentureBeat, August 1, 2007.
  16. ^ Cindy Atoji Keene, "Online solutions for real life hassles Archived 2016-05-06 at the Wayback Machine," Boston Globe, May 19, 2013.
  17. ^ Kyle Alspach, "Care.com files confidentially for IPO next year (report) Archived 2013-12-05 at the Wayback Machine," Boston Business Journal, November 25, 2013.
  18. ^ Daryl Nelson, "Care.com: Is it the Craiglist of the future? Archived 2013-12-17 at the Wayback Machine" ConsumerAffairs, January 21, 2013.
  19. ^ "How Much Does Care.com Cost: Membership, Background Check, Pay". Gigworker.com. 2019-01-04. Archived from the original on 2021-01-20. Retrieved 2021-01-22.
  20. ^ April Rueb, “Paying Your Babysitter Archived November 28, 2011, at the Wayback Machine,” Parents Magazine blog, April 17, 2011.
  21. ^ a b Om Malik, “Reid Hoffman invests in Care.com Archived 2011-12-03 at the Wayback Machine,” GigaOm, July 30, 2007.
  22. ^ Scott Kirsner, "The Backstory: On Care.com, Sittercity, Entrepreneurs, and Entrepreneurs-in-Residence Archived 2015-10-29 at the Wayback Machine," Boston.com, November 23, 2009.
  23. ^ Olivia Solon, “Carer marketplace Care.com launches in UK Archived December 17, 2013, at the Wayback Machine”, Wired UK, April 19, 2012.
  24. ^ Jamillah Knowles, "Online care-giving firm Care.com scores $50m round to fuel international expansion Archived 2020-02-10 at the Wayback Machine," The Next Web, August 7, 2012.
  25. ^ The 17th Annual Webby Awards Archived 2013-12-17 at the Wayback Machine. The Webby Awards Homepage.
  26. ^ "Karoo home page Archived 2015-04-29 at the Wayback Machine," Care.com web site
  27. ^ Rebecca Grant, “Care.com raising $80M IPO to capture early (and massive) care market Archived 2016-11-17 at the Wayback Machine,” Venture Beat, December 12, 2013.
  28. ^ Matt Marshall, "Caring.com, a site for caregivers, to launch this week Archived 2016-05-26 at the Wayback Machine," VentureBeat, September 20, 2007.
  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.
  32. ^ 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.
  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.
  35. ^ Kyle Alspach, "Care.com prices IPO above forecast, ends Boston's VC-backed tech IPO drought Archived 2014-01-27 at the Wayback Machine," Boston Business Journal, January 23, 2014.
  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.
  37. ^ Murphy, Shelley (December 29, 2015). "Background check failed to find nanny's record". The Boston Globe. Archived from the original on July 2, 2020. Retrieved July 2, 2020.
  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. ^ a b 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.
  40. ^ Grind, Kirsten (2019-03-11). "Care.com Overhauls Vetting of Sitters, Listings". Wall Street Journal. ISSN 0099-9660. Archived from the original on 2020-12-02. Retrieved 2020-12-18.
  41. ^ Grind, Shane Shifflett and Kirsten (2019-03-31). "Care.com Removes Tens of Thousands of Unverified Listings". Wall Street Journal. ISSN 0099-9660. Archived from the original on 2020-11-07. Retrieved 2020-12-18.
  42. ^ Elly Cosgrove, "Care.com shares surge after Barry Diller's IAC agrees to buy online caregiver marketplace Archived 2019-12-23 at the Wayback Machine," CNBC, December 20, 2019.
  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.
  45. ^ Borkowski, Rob (24 March 2020). "Care.com Offers RI Free Access, RI Seeks Credit". WarwickPost.com.
  46. ^ Malik, Aisha (2024-08-26). "Care.com to pay customers $8.5M in FTC settlement for deceiving caregivers, families". TechCrunch. Archived from the original on 2024-08-30. Retrieved 2024-09-05.
  47. ^ Carrazana, Chabeli (2024-08-29). "Care.com misled caregivers and families — and made it 'impossible' to cancel, the FTC claims". The 19th. Retrieved 2024-11-05.
  48. ^ Leech, Marie (June 16, 2023). "A majority of American families find child care unaffordable. One in four parents quit their job as a result". www.bizjournals.com.
  49. ^ Ceron, Ella (9 March 2023). "Companies Eye Cutting Benefits for Working Parents as Recession Looms". Bloomberg.com.
  50. ^ "Care.com Reports That Investing in Family Care Benefits Remains Strong Despite Employer Budget Cuts". www.businesswire.com. 9 March 2023.
  51. ^ Chris Reidy, “Care.com acquires Breedlove & Associates Archived 2016-05-06 at the Wayback Machine,” Boston Globe, August 21, 2012.
  52. ^ Kyle Alspach, “Care.com acquires payroll biz Archived 2013-11-24 at the Wayback Machine,” Mass High Tech, August 21, 2012.
  53. ^ Brian Womack, “Care.com Acquires Besser Betreut as Website Expands Internationally,” Bloomberg.com, July 11, 2012.
  54. ^ Chris Reidy, “Care.com buys Parents in a Pinch Archived 2016-03-04 at the Wayback Machine,” Boston Globe, January 15, 2013.
  55. ^ "Care.com acquires Citrus Lane Archived 2015-10-03 at the Wayback Machine", Care.com, July 17, 2014.
  56. ^ "Care.com shutting down e-commerce firm it previously acquired Archived 2017-06-23 at the Wayback Machine", bizjournals.com, October 29, 2015.
  57. ^ "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.
  58. ^ a b "Acquisitions by Care.com". Archived from the original on 2021-04-16. Retrieved 2021-04-16.
  59. ^ "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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