Paper Tiger or Sleeping Giant: The Birth of ANGI Homeservices
On Oct. 2, Home Advisor and Angie’s List officially became ANGI Homeservices (ANGI), following the successful purchase of Angie’s List by Home Advisor parent company IAC.
While ANGI president Craig Smith offers assurances that the two brands will remain separate, the merger still potentially gives listing professionals instant access to a much wider audience, spanning 400 markets. Yet, the real selling point of ANGI, at least according to HomeAdvisor CEO Chris Terrill, is expanding share and services. Upon completing the $500 million transaction, HomeAdvisor’s staff grew by a third, and the new company is projecting a 20 to 25 percent compounded growth rate over five years. Confident (or optimistic), ANGI has promised new products, services, and technology across its brands including Same Day Service, Instant Booking, and Instant Connect.
“Combined, the two marketplaces expect to see millions of homeowner requests a month and the overlap [in audiences] is not significant,” Smith says. “As more home remodelers and general contractors move online and move their business to mobile, we have robust mobile apps.”
An important part of ANGI’s strategy is to specifically target Millennials, who “want instant, on-demand experiences and convenience when it comes to all aspects of their lives,” Smith says, “including finding a pro to remodel their kitchen.”
Yet while the Millennials are unique in some ways, they still favor word-of-mouth referrals for selecting a contractor, just like prior generations. That’s a dynamic that ANGI is hoping to change.
As a single company, ANGI will be better positioned to “rapidly grab share from our single biggest competitor,” Terrill said, in a statement. He identified that competitor as word-of-mouth referrals.
