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All-in-one hire & payment app for blue collar gigs

Denmark
Market: Internet and IT, Services, Mobile applications
Stage of the project: Operating business

Date of last change: 27.03.2020
Min investment
$  35.000
Show contacts
Total required
$ 220.000
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Idea

As business founders we have hired more than +500 workers during past 10 years and know how difficult and costly it is to hire and pay for short term og seasonal jobs. Similar business owners and the future trends confirms this with the rise of Gig-economy and freelance industry.
There are lots of business owners who do not even consider temp agencies because of the pricing and process.
We believe Gigstar will provide value for both users (businesses & freelancers) to work together on a convenient platform where processes are mobile first and automation is prioritized.

Current Status

Built a MVP available on iOS/Android/Web.
Onboarded paying users.
Currently in Product/Market fit stage.

+1000 freelancers
+10 recurring businesses/clients
Valuable customer examples are product demo companies and event company as well as temp agencies who used our platform because it works much faster and convenient than anything else.

Market

In Denmark alone, Temp agencies had a turnover in 2018 of USD 1.147.188.661,00 within blue collar industries such as transportation, warehouse, logistics, production, construction and the food service industry. The freelance market consists of approximately 162 million within US and EU 15.
All these above mentioned industries would benefit from using freelancers instead of Temp's when it's short term, which is often is.
All indicators show, that this market is growing.

Problem or Opportunity

-Currently companies either overpay temp agencies to get screened workers or companies themselves hire part time workers from facebook groups or within their network while still struggling with the reporting and payment process.

-Gigstar goal is to offer 10x better solution, replacing temp agencies and any other solution when it comes to immediate hiring for short term blue collar jobs.

-We prioritize automation based on AI and mobile first experience. Offering apps to freelancers as well as businesses for instant valuable matches.

Solution (product or service)

Remove the time-consuming and cumbersome process of hiring for short term local gigs.
We built a product where you save the time searching for applicants or jobs. When a company posts a job on the Gigstar Business app, a push notification is sent to local and relevant freelancers. Those rated and verified freelancers applies with a swipe. The company can decide to choose between the freelancers or let the AI kick in and accept the best matched freelancer based on an algorithm. Pretty simple and easy, removing all friction while getting the work done!

We believe we can create more jobs, because of our solution. Production often goes down when companies are missing staff because temp agencies are to expensive and slow. With our solution we are giving more people the chance to show what they can do and build up their resume while companies benefit in the process, keeping production up. When companies are in urgent need of help, we believe that they are also inclined to not be as prejudiced, hopefully broadening their perspective on gender and color.

Competitors

Global competitor examples:
-Uber Works
-Hyr.work
-Wonolo.com

Local competitors:
None relevant yet, but temp agencies are working their way into this space.
We believe that as long as they do not specialize into specifically short term blue collar jobs, Gigstar will still be the preferred solution.

In general, we do not fear competition, but we fear nobody wants to copy us.
We love the out-of-the-box thinking and HBS Professor Clayton Christensen explains this very well with his quote:
“The worst place to develop a new
business model is from within your
existing business model.”

Advantages or differentiators

There are few niche competitors who focus on solving problems for specific industries only such as Restaurants, these often have low user LTV and high churn rate due to the limited opportunities. We differentiate from these by focusing on a frictionless all-in-one platform. Liberate users from having 100 apps for 100 different jobs to have 1 app for multiple jobs.
Most companies needs different kind of short term workers during their lifetime. This could be a driver, warehouse helper, cleaner etc.
Most freelancers wants the freedom of choosing different jobs during their lifetime, not only to have an income but to challenge themselves as well as gaining new experiences.
This will generate a much higher lifetime value for both players, we already see this with our existing users.
We truly believe in the Gig-economy and this kind of platform will surely prevail. We will do whatever it takes to be the dominating marketplayer by building the biggest pool of freelancers and gaining the benefits of the network effect.

Finance

We make money with to revenue models (which we still would need to try out on larger scale)

1) SaaS: We offer a subscription to businesses. By providing app access to a pool of active, reliable and screened local workers, who are ready to work immediately.
Subscription will be USD 90 or USD 145 depending on monthly or yearly payment.

2) Commission / Take-rate on each transaction (currently 20%)

We expect to have at least 2800 companies on board in Denmark within three years. These companies should create an average (at the lowest) of 2,5 units per company with each unit on the platform being approximately USD 190

Business model

We believe that we can offer a better product/solution than temp agencies for a fraction of their price. Therefore, our focus is not offering lower price but a better product that gets results much faster. This might change once more similar solutions like ours gets in to the market.

1) SaaS: We offer a subscription to businesses. By providing app access to a pool of active, reliable and screened local workers, who are ready to work immediately.

2) Commission / Take-rate on each transaction (currently 20%)

Money will be spent on

Marketing and sales
Legal and accounting
Software
Support team
Salary

Offer for investor

We are currently working from this model:
Pre-money USD 1,140,000.00
Funding preferably USD 145,000.00 for 8.3% of the company.

Mentors & Advisors

Risks

No product/brand awareness
Low revenue
Small team (Workload)
Low resource capacity
No product/market fit yet
No subsidies to build two-sided markets yet
No major partnerships yet
New Regulations
Negative public attention (Shitstorm)
Upcoming competitors

Incubation/Acceleration programs accomplishment

None yet.
We are currently discussing terms with an investor regarding USD 72,000.00

Won the competition and other awards

None yet.

Invention/Patent

We have created the platform which includes a business app and a freelancer app for both Android and iOS. That's four native apps and a web client including advanced dashboard.

Photos

Photo 1 - All-in-one hire & payment app for blue collar gigs

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Idea
Current Status
Market
Problem or Opportunity
Solution (product or service)
Competitors
Advantages or differentiators
Finance
Invested in previous rounds, $
Business model
Money will be spent on
Offer for investor
Team or Management
Mentors & Advisors
Lead investor
Risks
Incubation/Acceleration programs accomplishment
Won the competition and other awards
Invention/Patent
Photos
Product Video
Website address