HomeAdvisor

About HomeAdvisor

HomeAdvisor operates as a digital marketplace connecting homeowners with service professionals for home improvement, maintenance, and remodeling projects. The company was originally founded as ServiceMagic in December 1998 by Rodney Rice and Michael Beaudoin, who were part of the founding management team of Einstein Bros Bagels. Their experience in building a nationally recognized brand likely influenced their approach to creating a centralized platform for home services.

The platform's business model is two-sided. For homeowners, it provides a free-to-use resource for project planning, finding pre-screened local professionals, and comparing quotes for over 500 types of tasks. This includes access to tools like the True Cost Guide, which offers price estimates based on real project data. For service professionals, HomeAdvisor operates on a paid network basis. Contractors pay for membership and are then charged a fee for the sales leads they receive through the platform, which can range from $15 to over $50 per lead. The company's revenue is primarily generated from these lead fees and professional membership subscriptions.

In 2004, InterActive Corp (IAC) acquired the company, then still ServiceMagic. A significant rebranding occurred in October 2012 when ServiceMagic became HomeAdvisor, a move intended to create a stronger consumer-facing brand. This was followed by a period of aggressive expansion, including the acquisition of several European home service platforms like Werkspot.nl and MyHammer. A pivotal moment in the company's history was the October 2017 merger with its competitor, Angie's List, which led to the formation of a new publicly-traded parent company, ANGI Homeservices Inc. (now Angi Inc.). This transaction solidified its position in the domestic home services market, estimated to be worth $400 billion. Following the merger, HomeAdvisor and Angie's List continued to operate as distinct brands under the Angi Inc. umbrella.