Care.com Sees Rapid Growth Following Acquisition by IAC
The Family Care Industry
In December of 2019, IAC/InterActive Corp. (IAC), the media and internet holding company, acquired Care.com, a platform that connects families to child care, senior care, and other resources. At the time of the purchase, the family care industry in the US was worth about $300 billion. Now, due to the pandemic, the sector is even larger.
Since IAC purchased Care.com, the company has seen demand for its services grow by triple-digit percentages. In comparison, the platform’s user base only grew by 3% between the third quarter of 2018 and the third quarter of 2019.
IAC’s Past Successes With Growing Tech Platforms
IAC has seen success developing a number of large online platforms. The holding company incubated Expedia (EXPE), Ticketmaster, and Match Group (MTCH), which owns and operates Tinder, Hinge, and other online dating services.
Last year, IAC announced that it would acquire Care.com for $500 million just a day after it shared plans to spin off its Match Group business. So far, this decision seems to have paid off.
IAC’s Initiatives at Care.com
The pandemic has led Care.com’s user base to expand for a number of reasons. Parents are looking for babysitters and tutors to help them balance working from home and helping their children with remote learning. Families are also seeking in-house care for elderly people as some are avoiding senior-care facilities because of worries about COVID-19.
IAC has also brought in new leadership for Care.com. For example, IAC hired a new head of safety who previously worked on screening and security at Uber. Care.com is also offering free childcare on election day this year at locations across 11 states. IAC hopes the changes it is making to Care.com will help the platform stay popular even when families are able to return to more normal routines.
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