Apps for domestic help services represent US$1 million market
A government report shows that Vietnam needed 250,000 domestic helpers in 2015, while Ho Chi Minh City alone needed 10,000 helpers. But only 30% of the demand could be met.
If a helper is paid VND4 million a month, the Hanoi and Ho Chi Minh City domestic help markets would be worth a total of VND1.4 trillion.
The existing helper supply operate under three main models – traditional, semi-traditional and technology-based.
In general, it takes 3-5 days to find one helper. But technology can help shorten the process, allowing all involved parties to save time.
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Jupviec.vn is the best-known app that combines online and offline models to provide domestic helpers. It’s known to many families and individuals because it is a pioneer in the field.
After three years of operation in Hanoi, jupviec.vn has received investment from CyberAgent to implement its plan to expand the market to the south.
After downloading the app, smartphone users can order domestic helpers by the hour, or from morning to afternoon, or they can ask them to stay with the head of the house.
The system will automatically select and introduce helpers with personal information, experience, skills and interview videos from which clients can choose.
Acting as the bridge that connects workers and clients, JupViec.vn earns 15%-20% from every successful contact. It now has 1,000 full-time and part-time workers.
Helpers can earn VND30,000 for every hour of work, or VND5-VND6 million a month. Helpers working at clients’ houses have to have smartphones, devices which can check work hours, forward the requirements and make assessments to classify work and improve service quality.
“Technology makes up 30%-40% of the process and helps the model develop at twice the speed as the previous year,” said Phan Hong Minh, CEO of Jupviec.vn.
Unlike Jupviec.vn, bTaskee is a completely technology-based model, like Uber. Established in February 2016, the model has arranged 14,000 working hours for 2,500 clients. The number of helpers registering to provide service in Ho Chi Minh City has reached 400. They can earn VND33,000 for every working hour.
As this is a purely technological model and does not employ or train workers, it received 15% of the remuneration workers receive.
The weak point of the model is the unclear quality of workers. Therefore, clients have to thoroughly study the information about workers and choose workers based on clients’ feedback.
An analyst said the market has a lot of potential as apps supplying domestic helpers have been successful in other regional countries such as Gojek in Indonesia, Kaodim in Malaysia, Singapore and the Philippines.
