Daojia (https://bj.daojia.com/) is a platform linking consumers and service providers directly. It provides different kinds of services, including massage, manicure, baby care, housekeeping and house maintenance.
Daojia was founded in 2014 by Jinbo Yao under 58 group in China. Until 2019, it employed over 6000 people, providing service to over 400 cities in 6 countries. It had provided services to over 23 million families with over 800 million service hours.
A winner in digital innovation
I view Daojia as a winner in digital area because it benefits millions of consumers by providing flexible and affordable services, promotes efficiency and innovation of service industry, and creates thousands of job opportunities especially for blue collar workers.
First, Daojia benefits end consumers by reducing cost charged by middleman, and save negotiation time. By creating a platform which linked the service provider and consumer directly, consumers can book service with service providers directly. All the process is very easy and transparent. It is very easy for consumer to book a housekeeping or massage even 2 hours later. Additionally, consumers can check the profile of the service providers, and chose the best fit.
Second, Daojia pushed traditional service providing companies, such as housekeeping service companies, facial care companies and spa companies, to further explore new ways of providing better service and reduce cost. For example, a one-hour massage booked on Daojia platform is around 30 dollars in China. The consumer does not need to go outside, which also helped them save time and traffic cost. While a traditional spa company normally charged around 50-60 dollars for one-hour service. There is no significant difference of massage service quality at home or at store. As a result, more and more people chose delivered to home service. The change pushed traditional companies to further improve their service and environment to maintain customers.
Third, Daojia provides tons of job opportunities to blue collar workers. Many of them could work part time and earn decent amount of money to support their family to live in an urban city. Daojia platform charge 10% of the service fee, which means the workers could earned 90% of the service fee, much higher than what they earned from a traditional service company. More importantly, the workers could enjoy flexible working hours by simply open their available time on the platform. Many workers work part time and still earn decent amount of money from Daojia service.
Future challenges: increasing competition
As a summary, there are more and more “deliver to home” platforms emerged in China and other countries with the trend of digitization. They promoted the efficiency of service industry and reduced the unnecessary middle steps of a service booking. With the digital transformation and innovation, the platform will be more and more user-friendly, which could attract more and more consumers in the future.
On the same time, consumers have more and more digital platform to choose from. Helijia, a deliver to home company focusing on manicure and spa are challenging Daojia.com for personal care service. JD.com, the top 4 e-commerce giant in China also create deliver to home service. How will Daojia.com face with the increasing competition? Digital transformation can not wait for change, but need do do everything before change happens.