Airtasker is an Australian online and mobile marketplace where users can outsource various tasks. Co-founder Tim Fung got the idea for the company after enlisting a friend to help him move furniture.
Airtasker makes money by charging users a booking fee whenever they post an advertisement to the platform. The exact fee depends on the value of the work to be performed.
Airtasker also charges a service fee to providers once the task has been completed. The service fee operates on a sliding scale according to how much value the provider adds to the Airtasker marketplace.
Business Model Element
Analysis
Implications
Examples
Value Proposition
Airtasker’s value proposition centers on convenience, flexibility, and access to a marketplace of skilled individuals. For Task Posters, Airtasker offers a platform to outsource various tasks, saving time and effort. Taskers benefit from income opportunities and the flexibility to choose when and where they work. Both parties gain access to a wide range of task categories and can negotiate task details and prices. Airtasker’s value proposition includes: – Convenience: Easily post tasks and find skilled individuals. – Flexibility: Choose tasks to work on and set your own schedule. – Access: Access a marketplace of Task Posters and Taskers. – Trust and Safety: Airtasker offers a secure platform with user reviews and verifications. – Cost Control: Task Posters can set their budgets.
Offers convenience and flexibility to Task Posters and Taskers. Task Posters can outsource tasks efficiently. Taskers have income opportunities and flexible work arrangements. Both parties access a marketplace of task categories. Trust and safety measures enhance user confidence. Cost control options for Task Posters. Attracts users looking for task outsourcing and income opportunities.
– Airtasker’s value proposition aligns with the growing gig economy and freelance work trends. – Trust and safety measures build confidence among users. – Cost control options appeal to budget-conscious Task Posters.
Customer Segments
Airtasker serves two primary customer segments: 1. Task Posters: Individuals and businesses seeking help with tasks they want to outsource, from household chores to professional services. 2. Taskers: Skilled individuals looking to earn income by performing tasks for others. Airtasker tailors its platform to meet the unique needs of these segments, providing Task Posters with an easy task posting process and access to skilled Taskers. Taskers benefit from a user-friendly interface to browse and bid on tasks.
Serves two main customer segments: 1. Task Posters: Individuals and businesses looking to outsource tasks. 2. Taskers: Skilled individuals seeking income opportunities. Customizes the platform to meet the specific needs of each segment. Task Posters benefit from a streamlined task posting process. Taskers have a user-friendly interface for browsing and bidding on tasks.
– Catering to two customer segments creates a balanced ecosystem and ensures task availability. – Tailoring the platform enhances user satisfaction and engagement.
Distribution Strategy
Airtasker’s distribution strategy is primarily digital and mobile-centric. Users access the platform through the Airtasker website and mobile app, available on smartphones and tablets. Task Posters can easily post tasks, and Taskers can browse and bid on tasks through the app. Airtasker also leverages social media, search engine optimization (SEO), and online advertising to promote the platform and attract users. The platform’s user-friendly interface ensures a seamless experience for both Task Posters and Taskers.
Relies on a digital and mobile-centric distribution strategy. Offers access through the Airtasker website and mobile app. Task Posters can efficiently post tasks, while Taskers can browse and bid on tasks. Utilizes social media, SEO, and online advertising for user acquisition. Ensures a user-friendly interface for a seamless experience.
– Mobile-centric distribution aligns with the increasing use of smartphones for online activities. – Online advertising and SEO efforts promote platform visibility and user acquisition. – User-friendly design enhances the user experience and engagement.
Revenue Streams
Airtasker generates revenue primarily through service fees and transaction fees: 1. Service Fees: Airtasker charges Task Posters a service fee based on the task’s total value. 2. Transaction Fees: Taskers pay a transaction fee when they secure a task. These fees contribute to the platform’s revenue. Airtasker also offers additional services, such as identity verification, at an additional cost.
Relies on revenue streams from: 1. Service fees charged to Task Posters based on task value. 2. Transaction fees paid by Taskers when securing tasks. Offers additional services for identity verification at an extra cost. Diversifies income sources through fees and additional services.
– Service and transaction fees provide a consistent source of revenue tied to task activities. – Additional services offer opportunities for supplementary income.
Marketing Strategy
Airtasker’s marketing strategy includes online advertising, search engine optimization (SEO), and social media marketing. The platform uses targeted online advertising to reach potential Task Posters and Taskers. SEO efforts ensure that Airtasker’s platform ranks well in search engine results, increasing its visibility. Social media marketing on platforms like Facebook and Instagram helps promote the platform and engage with the community. Additionally, referral programs leverage existing users to drive user acquisition.
Utilizes online advertising, SEO, and social media marketing for promotion. Uses targeted online advertising to reach potential Task Posters and Taskers. Invests in SEO efforts to improve search engine visibility. Engages with the community through social media marketing on platforms like Facebook and Instagram. Leverages referral programs for user acquisition.
– Online advertising and SEO enhance platform visibility and attract users. – Social media engagement helps build a community and fosters user engagement. – Referral programs leverage existing users to drive user acquisition.
Organization Structure
Airtasker’s organizational structure includes teams focused on product development, technology, marketing, customer support, and verification services. Product development and technology teams continuously improve the platform’s features and user experience. Marketing teams promote Airtasker’s services and engage with the community. Customer support teams assist users with inquiries and issues. Verification services ensure trust and safety on the platform. Airtasker’s structure supports innovation, user satisfaction, and trust-building efforts.
Employs specialized teams for product development, technology, marketing, customer support, and verification services. Enhances platform features and user experience through product development and technology teams. Promotes services and community engagement through marketing teams. Assists users with inquiries and issues via customer support teams. Ensures trust and safety through verification services. Supports innovation, user satisfaction, and trust-building efforts.
– Specialized teams ensure a user-friendly platform with evolving features. – Marketing teams drive user acquisition and community engagement. – Customer support enhances the user experience and trust in the platform. – Verification services promote safety and trust among users.
Competitive Advantage
Airtasker’s competitive advantage lies in its user-friendly platform, diverse task categories, and community trust. The platform’s ease of use attracts both Task Posters and Taskers, fostering a balanced ecosystem. Airtasker’s extensive range of task categories ensures a wide array of opportunities for users. The trust built through user reviews and verifications fosters confidence in the platform. Airtasker’s focus on local tasks and services sets it apart from competitors, as it addresses specific needs within communities.
Derives a competitive advantage from: – User-friendly platform design. – Diverse task categories offering a wide array of opportunities. – Trust and confidence fostered through user reviews and verifications. – Focus on local tasks and services addressing community-specific needs. – Balanced ecosystem attracting both Task Posters and Taskers.
– Ease of use and a diverse range of tasks appeal to a broad user base. – Trust-building measures enhance user confidence and satisfaction. – Focusing on local tasks addresses specific community needs.
Airtasker is an Australian online and mobile marketplace where users can outsource various tasks. The company was founded by Tim Fung and Jonathan Lui in 2012.
Fung got the idea for Airtasker after asking a friend to help him move furniture:
“The poor guy said he’d helped people move like four times in the last few months, and it got me thinking. Why do we always lean on friends and family to help us do stuff, when there’s a band of willing and able people out there, who’d welcome the chance?”
Fung then teamed up with former colleague Jonathan Lui, with the pair managing to raise $1.4 million from investors at former employer Amaysim.
To promote his idea, Fung paid someone $1000 to line up at the Apple store in Sydney and secure him the first iPad 3 in Australia.
The individual was a former truck driver who had recently been made redundant, so this proved to be good publicity for the fledgling platform.
Airtasker was officially launched in February 2012, with another round of investment funding used to develop an iPhone and Android app.
Various safety features were also added for buyers and sellers to increase trust in the platform. Growth continued unabated in the next few years as Airtasker acquired several direct competitors.
In 2015, it announced a crucial partnership with consumer electronics and white goods retailer The Good Guys.
As part of the deal, Airtasker would provide customers with home installation services for various products including televisions and fridges. A similar deal for furniture assembly services was also struck with Ikea two years later.
The majority of jobs on the Airtasker network relate to home and garden, delivery, removal, and trade services.
Airtasker revenue generation
Airtasker makes money by charging booking fees and service fees. Let’s take a look at these fees in more detail below.
Booking fees
The booking fee is charged to the person who is looking for someone to complete a task, with prices starting at $2.90. For more expensive tasks, such as those incorporating home renovations, the booking fee is capped at $24.90.
Service fees
Service fees are used to cover the costs associated with operating the Airtasker marketplace, including those related to fraud protection, insurance, support, and secure payment systems.
Service fees are charged for every task that is completed. The company rewards service providers who are professional, reliable, responsive, and honest with lower fees according to a sliding scale.
The scale is represented by four tiers: Bronze, Silver, Gold, and Platinum. In Australia, for example, the service fee structure is as follows:
Bronze tier – 20%.
Silver tier – 16.4%.
Gold tier – 12.7%.
Platinum tier – 10%.
Key Highlights
Airtasker’s Overview: Airtasker is an Australian online and mobile marketplace where users can delegate various tasks. It was founded by Tim Fung and Jonathan Lui in 2012, originating from Fung’s experience of seeking help to move furniture.
Revenue Generation: Airtasker generates revenue through booking fees and service fees.
Booking Fees: Users are charged a booking fee when posting a task advertisement on the platform. The fee varies based on the task’s value, starting at $2.90 and capping at $24.90 for higher-value tasks like home renovations.
Service Fees: Service fees are charged to task providers upon successful task completion. These fees cover expenses related to operating the marketplace, such as fraud protection, insurance, support, and secure payment systems.
Origin Story: Tim Fung’s personal experience of relying on friends for help inspired the idea of Airtasker. He joined forces with Jonathan Lui and secured initial funding from investors at former employer Amaysim. A promotional stunt involving hiring someone to queue for an iPad at an Apple store helped garner attention.
Growth and Partnerships: Airtasker’s growth led to the acquisition of competitors and partnerships with retailers like The Good Guys and Ikea. These partnerships offered home installation and furniture assembly services to customers.
User Base and Categories: Airtasker has facilitated over $1 billion in working opportunities since its launch, and by September 2021, it had more than 500,000 members. The platform covers various categories, including home and garden, delivery, removal, and trade services.
Service Fee Tier Structure: Airtasker’s service fees vary based on a sliding scale that rewards professional, reliable, responsive, and honest service providers. The scale includes four tiers: Bronze, Silver, Gold, and Platinum.
A platform business model generates value by enabling interactions between people, groups, and users by leveraging network effects. Platform business models usually comprise two sides: supply and demand. Kicking off the interactions between those two sides is one of the crucial elements for a platform business model success.
A marketplace is a platform where buyers and sellers interact and transact. The platform acts as a marketplace that will generate revenues in fees from one or all the parties involved in the transaction. Usually, marketplaces can be classified in several ways, like those selling services vs. products or those connecting buyers and sellers at B2B, B2C, or C2C level. And those marketplaces connecting two core players, or more.
A network effect is a phenomenon in which as more people or users join a platform, the more the value of the service offered by the platform improves for those joining afterward.
In an asymmetric businessmodel, the organization doesn’t monetize the user directly, but it leverages the data users provide coupled with technology, thus have a key customer pay to sustain the core asset. For example, Google makes money by leveraging users’ data, combined with its algorithms sold to advertisers for visibility.
In an asymmetric businessmodel, the organization doesn’t monetize the user directly, but it leverages the data users provide coupled with technology, thus having a key customer pay to sustain the core asset. For example, Google makes money by leveraging users’ data, combined with its algorithms sold to advertisers for visibility. This is how attention merchants make monetize their business models.
The wholesale model is a selling model where wholesalers sell their products in bulk to a retailer at a discounted price. The retailer then on-sells the products to consumers at a higher price. In the wholesale model, a wholesaler sells products in bulk to retail outlets for onward sale. Occasionally, the wholesaler sells direct to the consumer, with supermarket giant Costco the most obvious example.
A retail business model follows a direct-to-consumer approach, also called B2C, where the company sells directly to final customers a processed/finished product. This implies a business model that is mostly local-based, it carries higher margins, but also higher costs and distribution risks.
A B2B2C is a particular kind of business model where a company, rather than accessing the consumer market directly, it does that via another business. Yet the final consumers will recognize the brand or the service provided by the B2B2C. The company offering the service might gain direct access to consumers over time.
The term “crowdsourcing” was first coined by Wired Magazine editor Jeff Howe in a 2006 article titled Rise of Crowdsourcing. Though the practice has existed in some form or another for centuries, it rose to prominence when eCommerce, social media, and smartphone culture began to emerge. Crowdsourcing is the act of obtaining knowledge, goods, services, or opinions from a group of people. These people submit information via social media, smartphone apps, or dedicated crowdsourcing platforms.
While the term has been coined by Andrew Lampitt, open-core is an evolution of open-source. Where a core part of the software/platform is offered for free, while on top of it are built premium features or add-ons, which get monetized by the corporation who developed the software/platform. An example of the GitLab open core model, where the hosted service is free and open, while the software is closed.
Open source is licensed and usually developed and maintained by a community of independent developers. While the freemium is developed in-house. Thus the freemium give the company that developed it, full control over its distribution. In an open-source model, the for-profit company has to distribute its premium version per its open-source licensing model.
The freemium – unless the whole organization is aligned around it – is a growth strategy rather than a businessmodel. A free service is provided to a majority of users, while a small percentage of those users convert into paying customers through the sales funnel. Free users will help spread the brand through word of mouth.
A freeterprise is a combination of free and enterprise where free professional accounts are driven into the funnel through the free product. As the opportunity is identified the company assigns the free account to a salesperson within the organization (inside sales or fields sales) to convert that into a B2B/enterprise account.
In a franchained businessmodel (a short-term chain, long-term franchise) model, the company deliberately launched its operations by keeping tight ownership on the main assets, while those are established, thus choosing a chain model. Once operations are running and established, the company divests its ownership and opts instead for a franchising model.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
