Move Loot, a YC-backed furniture resale market, shuts down, sells client list to Handy
There’s some closure (actually and figuratively) for Move Loot, the furniture resale market that we composed previously this month was up for sale. The start-up backed by almost $22 million in funding from a list of leading investors that included Y Combinator, GV, Index, Metamorphic and Sherpa has closed down its business and offered access to its consumer list to Handy, the home services company that provides cleaning and repairs as needed. TechCrunch comprehends that no other possessions or workers are a part of the offer.
The news was revealed in a letter sent out to Move Loot clients earlier today. We’re sorry to announce that as of today the Move Loot furniture market is coming to an end and we have actually ceased operations, the letter signed by co-founders Shruti Shah, Bill Bobbitt, Jenny Karin Morrill and Ryan Smith checked out in part. We are partnering with Handy, the much-loved home services marketplace, to help our customers with all things home from cleaning services to moving assistance to furniture assembly.
To be clear, Handy is not immediately registering Move Loot consumers to Handy accounts. It is offering Move Loot consumers a totally free hour of services as an introduction. While that hour could be utilized for cleaning or other service in the Handy umbrella, we understand Handy had an interest in marketing to Move Loot s customer base particularly because it is developing a brand-new line of work in storage.
(Possibly coincidental side note: It resembles at least some folks at Handy had their eyes on Move Loot for a minimum of a year prior to now.).
Move Loot’s company was initially developed around selling furniture on consignment, implying that it, too, when offered a sort of storage service of sorts. As Move Loot ran out of cash, it eventually pivoted to a peer-to-peer sales model.
Prior to the offer, TechCrunch understands that Move Loot had been speaking to other business to sell all or part of its possessions. One company in the frame was New York-based AptDeco, a YC alum from the exact same cohort at Move Loot, and also focused on reselling furniture and home design through a peer-to-peer market but nothing came of that.
Over the past 2 years we’ve been focused on development, operational quality, and client satisfaction with a primary concentrate on success, AptDeco’s co-founder Kalam Dennis told TechCrunch. We have talked with Move Loot regarding their interest in an acquisition. Eventually were only thinking about chances that align with the formerly discussed tactical goals.
The larger imagine is that while there are some big juggernauts in the on-demand services market from transportation companies like Uber and Lyft through to still-growing plays like shipment service Postmates the space continues to be difficult because growth costs are high (partly because of marketing, partially because of the nature of some of these labor-intensive services) while margins are thin. As an outcome, we will likely see a lot more consolidation and closures as some startups lose money, and others get gotten in the quote for much better economies of scale.
For its part, Handy is among the home services gamers that like Thumbtack is intending to be one of the last males standing, so to speak. The startup has raised more than $110 million in funding; has gotten a couple of smaller rivals; and is now quietly and slowly developing out a portfolio of services to introduce more users.
Today, Handy s pillar remains cleaning, but it’s likewise checking out a company selling, providing and putting together furniture; and this week it is altering how it lets customers purchase services. Users can now decide to demand services from specific Pros experts on its books. This is one way to motivate more loyal clients, especially in services like cleaning up where you may choose to have the very same person concerned your home every week.
The fast rush of financing that Move Loot raised since very first opening for company in 2013 made it appear like one of the anointed in the battle to take on Craigslist in the sale of secondhand furniture. And it had a fantastic message: keeping quality furniture in houses and from landfills as its founders explained it. However, a better take a look at the company exposed a great deal of problems, too.
It grew quickly and somewhat haphazardly, with expansions to cities like Charlotte, Atlanta, New York and Chicago. Some ex-employees on Glassdoor complained that inexperienced management was an issue.
And, more recently, Move Loot’s customers began to publicly grumble on social networks that the site was no more accepting listings, that they couldn’t get products delivered which shipments were canceled with no description. The company’s customer assistance lines called to voicemail. Promised refunds on cancellations didn’t materialize, compelling some consumers to file conflicts with their charge card company rather.
It’s unclear the number of customers Move Loot had in the end, however for those who are affected, Move Loot has actually noted some information about how to go about eliminating credits from your account and tying up other loose ends. We re copying those below.
And we’ll continue to keep an eye out to see if other possessions from Move Loot make a look.