(+971) 8007 4267
(+91) 946 340 7140
(+1) 628 432 4305
People are getting used to the convenience of on-demand service and the reason is that it is instantly available to them, and these services cater to a wide range of needs. One of the rising platforms in this segment is the on-demand home service apps. This platform provides professional help with tasks like cleaning, repairs, maintenance, personal training, event planning, and more. These tasks are something that is mandatory in daily life, and we are too busy or lazy to do them ourselves. At present, Thumbtack is a prominent name in the on-demand services category. It is popular because it makes it easy to find and hire professionals for various tasks. As per the report, the annual revenue of this app reached $750M in June 2024. Plus, it has also received financing of $75M this year.
Considering the success of Thumbtack, if you’re thinking about creating a similar app, it’s important to know the costs and features involved. In this blog, we’ll explain what you need to build a home services app like Thumbtack, including the must-have features and financial investment required to launch a competitive product that meets the needs of consumers.
Thumbtack: Overview
Thumbtack is a digital platform designed to simplify the process of connecting customers with local service providers. It was launched in 2010 by Logan Abbott, Leo Sadovski, and Peter Chapman. This online marketplace allows users to effortlessly find and hire professionals for a wide range of tasks, from home repairs to personal services.
The platform operates by allowing customers to search for services within their locality and view detailed profiles of local professionals. Users can then request quotes from multiple providers, review their responses, and make informed decisions based on feedback and ratings. Communication here is facilitated directly through the app, which simplifies the booking process. This app basically allows users to manage everything from their devices. On the other hand, it supports professionals by providing them with a platform to expand their client base.
Here are some of the top professional services provided by Thumbtack:
| Category | Services |
| Home Improvement & Repair | Handyman, cleaning services, painters, roofers, flooring specialists, pool maintenance, lawn care, and more |
| Cleaning Services | Residential and commercial cleaning solutions |
| Photography | Commercial photography, wedding photography, and more |
| Business Services | Data entry, logo design, and related services |
| Design & Web Development | Software engineering, animation, and other design-related services |
| Pet Services | Dog walking, pet care, and additional pet-related services |
| Lessons | Yoga instruction, math tutoring, and other educational services |
| Crafts | Custom jewelry, songwriting, and other artistic crafts |
| Estate Planning | Services for estate management and planning |
| Personal Services | Life coaching, wardrobe consulting, and similar personal services |
| Repair & Tech Support | Equipment repair, data recovery, and tech support |
| Writing, Translation, & Transcription | Editing, content writing, translation, and transcription services |
| Events | Catering, makeup artists, entertainment, and other event planning services |
| Wedding Services | Wedding officiants, photographers, planning services, and other wedding vendors |
What Makes The Thumbtack App Unique?
Thumbtack offers several standout features:
- Home Profile: Keeps essential home details organized for easy access and management.
- Seasonal Upkeep Guides: Provides step-by-step instructions for maintaining your home throughout the year.
- Goal-based Guides: Suggest project ideas based on specific home improvement goals.
- Actionable Plans: Centralizes project management, allowing users to effectively prioritize and track tasks.
- AI-powered Search: Utilizes advanced language models to find accurate solutions for home-related issues.
- Tasker Profiles: Enables professionals to create detailed profiles to highlight their skills and services.
- Opportunities Tab: Helps service providers discover new job opportunities.
- Hassle-free Payment Integration: Simplifies the process for sending and receiving payments.
- Thumbtack Guarantee: Offers a money-back guarantee for certain services, enhancing user trust.
- Instant Book: Allows users to schedule services quickly and easily.
- Customer Reviews: Provides verified feedback to support informed decision-making.
- Cost Estimates: Gives users price estimates for different services to help with budgeting.
- Chat with Professionals: Allows users to directly message experts to discuss projects and get quotes.
Key Market Takeaways For Home Service Apps
The Online On-Demand Home Services Market is anticipated to grow to $12.09 billion by the end of the forecast period (2024-2030), with a CAGR of 40.5%. Additionally, another report predicts that the global online on-demand home services market will expand at a compound annual growth rate of 16.7% from 2022 to 2030.
Business And Revenue Model Of Thumbtack App
Thumbtack functions as a two-sided marketplace, and this approach ensures a match between service seekers and providers, which benefits both parties.
Business Model
- Thumbtack operates by linking customers who need various services with professionals offering those services. This setup supports a wide range of needs, from home improvement and education to wellness and beyond, making it a versatile platform.
- Thumbtack provides access to over 1,100 service categories throughout all 50 states in the USA. This extensive reach allows users to find specialized professionals regardless of their location.
- The platform features a well-designed interface and a matching algorithm that simplifies the process of finding and hiring local experts.
Revenue Model
- Thumbtack generates revenue through a pay-per-lead model, where professionals incur costs for each lead they receive. This method allows service providers to pay based on potential business opportunities, aligning expenses with their level of engagement.
- The platform offers subscription plans for professionals, granting access to premium features and additional tools. These memberships help professionals increase their visibility and effectiveness, offering a way to enhance their business presence on the platform.
- Thumbtack utilizes a credit-based system, which allows professionals to purchase credits to contact potential clients. This flexible approach allows service providers to manage their outreach more efficiently and engage with prospective customers in a scalable manner.
| Cost Type | Details |
| Pay-per-Lead Costs | |
| Lead Costs | Each lead response costs between $5 to $100+ |
| Photography | $5 to $15 per lead |
| Electrical | $30 to $60 per lead |
| Plumbing | $40 to $100 per lead |
| Wedding Planning | $8 to $20 per lead |
| House Cleaning | $3 to $12 per lead |
| Remodeling | $100+ per lead |
| Thumbtack Credits | |
| Credit Costs | Single credits cost around $1.50 |
| Bundles | Range from $17.99 to $84.99 |
| Lead Costs in Credits | 2 to 9 credits (approximately $3.34 to $15.30 per lead) |
| Subscription Plans | |
| No Subscription Fees | Thumbtack does not charge any subscription or membership fees |
Features That Make Thumbtack App Popular Among Its Users
Thumbtack excels due to its practical and user-friendly features:
- Wide Range of Services: The app provides access to many services, including home repairs and personal training. This variety allows users to find everything they need in one place.
- Instant Booking: Users can book services immediately with available professionals. This feature streamlines the process, saving users valuable time.
- Money-Back Guarantee: Thumbtack offers a guarantee for certain services. This adds an extra layer of security and confidence for users.
- Clear Cost Estimates: The app offers detailed price estimates for various services, which helps users plan their budgets with greater accuracy.
- Easy Navigation: Designed with simplicity in mind, the app ensures users can quickly locate the services they are looking for without unnecessary complexity.
- Management Tools for Professionals: Service providers benefit from tools that help manage leads and schedules, making it easier to operate their businesses.
- AI-Enhanced Search: The app utilizes artificial intelligence to provide users with relevant solutions, improving the accuracy of search results.
- Direct Messaging: Users can communicate directly with professionals to discuss project details and obtain precise quotes, facilitating clear and efficient interactions.
- Practical Guides: Users receive step-by-step guidance for home maintenance and improvement projects. This feature supports efficient management of home tasks.
- Verified Reviews: The app features ratings and feedback from other users. This helps users make informed decisions based on the quality of services provided.
Innovative Features That Can Enhance An App Like Thumbtack
Here are some innovative features that can significantly enhance your app, like Thumbtack, and could offer a competitive edge:
1. Home Health Dashboard
This feature provides users with a detailed overview of their home’s condition. It includes maintenance schedules, energy consumption, and alerts for potential issues detected by smart home devices. With this feature, users can monitor their home’s health in real-time for proactive maintenance.
2. Smart Matching Algorithm
An enhanced algorithm goes beyond basic matching by evaluating availability, historical performance, and user preferences. This ensures users are paired with the most suitable professionals for their specific needs to improve service quality and satisfaction.
3. VR Consultations
VR consultations offer an immersive experience, and users visualize proposed tasks or projects in their space before committing. This feature can help users make more informed decisions and increase their confidence in the job.
4. AI-Powered Maintenance Scheduler
Artificial intelligence can forecast and organize routine maintenance tasks using the user’s home profile and past service history. This feature ensures that maintenance is carried out consistently, minimizes the risk of unforeseen problems, and keeps the home in optimal condition.
5. Emergency Service Button
A dedicated button for emergency services connects users instantly with available professionals. This feature is important for handling urgent situations efficiently and ensures rapid response times.
6. On-Demand Video Support
This allows users to interact with professionals through live video calls for immediate assistance. It is particularly useful for urgent repairs or quick advice and provides real-time support and guidance.
Development Steps For Home Service App Like Thumbtack
Creating a home service app similar to Thumbtack involves the given process:
1. Geolocation-Based Matching And Filtering
Begin by integrating GPS and location services to pinpoint users’ locations accurately. Develop algorithms that use this data to connect users with local service providers. Incorporate filters that allow users to sort results based on distance, price, ratings, and skill sets. This setup ensures that users receive relevant and nearby service options customized to their preferences.
2. Skill Verification And Certification
Implement a system for verifying the qualifications and skills of service providers. This could involve requiring certifications, proof of experience, or other forms of validation. Establish programs to recognize and highlight skilled professionals within the app. Ensure that matching algorithms consider these qualifications to connect users with providers who meet their specific needs.
3. Communication Tools
Develop an internal messaging system to facilitate direct communication between users and service providers. Incorporate secure and user-friendly features for discussing service details. Add video conferencing capabilities to allow real-time consultations and discussions, which can help users and providers coordinate more effectively.
4. Flexible Pricing Models
Support various pricing models, including hourly rates and project-based pricing, to meet diverse user needs. Clearly present pricing structures and any additional fees to maintain transparency. Implement a system to track hours worked and calculate charges according to the chosen pricing model so that users can manage costs and get accurate billing.
5. User Reviews And Reputation Management
Introduce a review and rating system that allows users to provide feedback on their experiences with service providers. Develop a reputation management system that aggregates reviews and ratings or scores, which can assist users in identifying reputable professionals. Implement measures to validate the authenticity of reviews and maintain the credibility of the feedback system.
6. Secure Payment Processing And Dispute Resolution
Integrate a payment gateway for secure online transactions and support various payment methods. Develop a clear dispute resolution process to handle conflicts between users and providers. Consider incorporating escrow services to safeguard funds until services are completed satisfactorily.
7. Service Bundling And Customization
Provide options for bundling related services, which provides convenience and potential discounts. Allow users to customize service packages according to their specific needs and preferences. This approach helps users access customized services while potentially saving on costs.
8. Service Provider Dashboard And Analytics
Design a dashboard for service providers to manage their profiles, bookings, and communications efficiently. Include tools that offer insights into performance metrics and user interactions. This feature allows providers to track their activities, analyze trends, and make data-driven decisions to improve their services.
9. Ongoing Improvement And User Feedback
Set up mechanisms for collecting user feedback to identify areas needing improvement and address issues promptly. Regularly update the app to incorporate new features, fix bugs, and enhance overall performance. Continuously refine the app based on user input and technological advancements to ensure it remains effective and user-friendly.
Tech Stack For Thumbtack Clone App Development
Here is the tech stack you may need to develop an app like Thumbtack. However, it can vary based on your unique requirements.
| Component | Technology |
| Frontend | React.js, Next.js, Redux, TypeScript, Styled Components |
| Backend | Node.js with Express.js, GraphQL, TypeScript, Prisma |
| Database | PostgreSQL, Redis, Elasticsearch |
| Mobile App Development | React Native, Redux, TypeScript, Expo |
| APIs and Integrations | Twilio, Google Maps API, Stripe, SendGrid |
| DevOps and Deployment | Docker, Kubernetes, AWS (EC2, S3, RDS), Jenkins or CircleCI |
| Additional Tools | Sentry, New Relic, Firebase |
| Security | OAuth 2.0, JWT (JSON Web Tokens), SSL/TLS |
Top Revenue Generating Methods That Are In Trend For Home Service Apps
To maximize revenue in the home service app market, you can use some of these diverse strategies:
1. Seasonal Promotions And Event Packages
Offering limited-time discounts for services during peak seasons like holidays or creating special packages for events, such as weddings or corporate gatherings, can drive demand. Customizing services for these occasions can lead to increased bookings and customer loyalty.
2. Subscription Plans For Regular Service
Providing subscription options for regular services like cleaning or lawn care ensures consistent income. Customers appreciate the convenience of automatic renewals, and businesses benefit from predictable revenue.
3. AI-Driven Dynamic Pricing
Implementing AI to adjust prices based on factors like demand or time of day can maximize earnings during high-demand periods. This strategy helps balance supply and demand while increasing profitability.
4. Freemium Model
Offering basic services for free and charging for premium features or advanced options allows businesses to attract a larger user base. This model encourages users to upgrade to paid services over time.
5. Virtual Consultations
Charging for virtual consultations or video calls with professionals for initial assessments or advice offers a new revenue stream. Customers gain access to expert advice without needing an in-person visit, and businesses can monetize expertise.
Cost Of Developing A Home Service App Like Thumbtack
Here’s the detailed cost breakdown for developing a home service app like Thumbtack:
| Component | Minimum Cost | Maximum Cost |
| Research and Planning | $300 | $2,000 |
| UI/UX Design | $500 | $10,000 |
| Web Frontend (React.js/Next.js) | $1,000 | $10,000 |
| Mobile Frontend (React Native) | $2,000 | $15,000 |
| Server-Side Development (Node.js/Express.js) | $500 | $7,500 |
| Database Setup (PostgreSQL/Redis) | $400 | $4,000 |
| API Development (GraphQL) | $300 | $8,000 |
| Core Features | – | – |
| User Registration and Authentication | $200 | $2,500 |
| Service Listings and Search | $100 | $2,000 |
| Booking and Scheduling | $200 | $5,000 |
| Payment Integration | $500 | $5,000 |
| Real-Time Chat | $300 | $2,000 |
| Ratings and Reviews | $100 | $1,000 |
| Notifications (Push/Email) | $100 | $1,000 |
| Geolocation Services (Google Maps API) | $700 | $3,000 |
| Admin Panel | $1,000 | $5,000 |
| Analytics and Reporting | $500 | $5,000 |
| Testing and Quality Assurance | $300 | $5,000 |
| Deployment (AWS/Google Cloud) | $500 | $2,000 |
| Total Cost Range | $10,000 | $100,000 |
Cost-Affecting Factors To Consider For Home Service App Development
Here are some factors that can be considered for home service app development:
1. Geolocation And Mapping Integration
Integrating accurate geolocation and mapping features can raise development costs. Using precise GPS technology is essential for locating users correctly but comes with added expenses. Adding real-time map updates also increases complexity and costs as it involves connecting to dynamic mapping services.
2. Service Categories And Specialization
The number of service categories available in the app impacts its development cost. A broader range of services requires more data handling and additional features, which can lead to higher costs. For specialized services like plumbing or electrical work, integrating industry-specific tools and standards can also add to the development expenses.
3. Scheduling And Appointment Management
Creating advanced scheduling features can drive up costs. Algorithms that manage provider availability, travel time, and project duration add complexity to the development process. Integrating with external calendars for easy appointment scheduling also adds to the effort and expense.
4. Payment Processing And Invoicing
Supporting multiple payment methods, such as credit cards, digital wallets, and cash on delivery, increases integration costs. Adding features for automatic invoicing and receipt generation requires extra development time to ensure accurate financial documentation.
5. Service Provider Management
Managing service providers involves additional costs. Background checks to confirm provider reliability and insurance verification add to both development and operational expenses. These processes require integrating with external systems and handling sensitive information.
6. Customer Support And Dispute Resolution
Offering 24/7 customer support increases operational costs. Moreover, developing features to resolve disputes between users and service providers is necessary and adds another layer of complexity and expense.
7. Safety And Security
Adding safety features, like emergency contacts or panic buttons, raises development costs. Securing user data, especially payment details and locations, requires strong encryption and security measures. This is actually important for protecting sensitive information and adds to the overall development effort.
8. Local Regulations And Compliance
Meeting local regulations and licensing requirements for service providers can increase operational costs. Ensuring tax compliance with local laws also involves additional accounting and legal work. Basically, both of these factors add to the cost of running the app.
Additional Considerations
Integrating with IoT devices, such as smart home systems, requires extra development work and testing. If the app needs to be available in multiple languages, translating it for different regions adds to the development and maintenance costs.
Conclusion
Building a home services app like Thumbtack can be a great way to meet the rising demand for on-demand services. Knowing the key features and costs involved will help you create a strong platform that serves users well. Thumbtack’s success shows that a good design, effective matching, and clear communication tools are essential. Although developing such an app requires investment and careful planning, it offers a significant opportunity to connect people with reliable service providers. With the right approach, your app can succeed in the growing home services market.
Looking To Develop A Home Service App?
At Idea Usher, we bring over 10 years of experience and 50,000+ hours of coding expertise to the table. Our track record includes delivering 200+ successful projects, including innovative apps like MV2 and Assist. We understand the demands of the home service market and can help you build a feature-rich platform that connects users with local professionals effectively. With our deep industry knowledge and technical skills, we’re ready to turn your app idea into a top-performing solution. Contact us today to start your journey toward creating a standout home service app.
developers, with combined 50000+ coding hours experience
FAQ
How to create a website like Thumbtack?
To build a website like Thumbtack, start by researching the market and deciding on key features like user profiles, search filters, and payment options. Choose the right technology and hire developers to build it. Testing the website and making improvements based on feedback are important steps before launching.
How does the Thumbtack app make money?
Thumbtack makes money by charging service professionals a fee to connect with potential customers. It also offers paid services like promoting their listings, which helps professionals get more visibility on the app, adding to its earnings.
What business model is Thumbtack?
Thumbtack uses a marketplace business model. It connects customers with service providers and charges the professionals for leads. The platform earns money by acting as an intermediary between the two parties and offering paid services.
How much does it cost to build an app like Thumbtack?
Creating an app like Thumbtack can cost between $50,000 and $200,000 or more. The final cost depends on the features you want, the platform you choose, and the team you hire. Other factors like design and ongoing maintenance also affect the price.
