As an hourly worker, it can be tough to find new job opportunities. A recent development in the industry may make it even more challenging. JobGet, a Boston-based startup that operates an hourly job-hunting site with social features built-in, has acquired Snagajob, one of its main rivals in the US market.
The Deal
According to JobGet, this acquisition will make it the largest job platform targeting hourly and frontline workers in the United States, covering 100 million people. However, it’s essential to note that this number represents the potential user base, not the actual number of active users on the platform. JobGet doesn’t disclose how many active users it has, except to say that it works with tens of thousands of customers and has helped secure millions of jobs.
Snagajob’s User Base
In contrast, Snagajob claims to have 3.6 million monthly active users and has filled 40,000 jobs at 14,000 employers. The financial terms of the deal are not being disclosed, but for context, JobGet was last valued at $440 million when it raised $52 million in 2022, according to PitchBook.
JobGet’s Growth
JobGet has been growing rapidly, with a valuation that more than doubled its previous investment. However, the company disputes an undisclosed amount it allegedly raised from Flow Capital this month. Flow and JobGet were already acquainted, as they had previously collaborated on a recruitment software provider called Wirkn, which JobGet acquired in June of this year for an undisclosed sum.
Snagajob’s Situation
The picture is less clear for Snagajob, which has been around for 25 years. The company has raised a total of $387 million from investors like StarVest and Rho Ventures. However, its last valuation on PitchBook dates back to a decade ago at $178 million. It’s uncertain how this relates to Snagajob’s current worth.
Consolidation in the Market
The acquisition is likely part of the inevitable consolidation in the space. In recent years, there has been a flurry of activity among tech companies building social, recruitment, and management tools targeting hourly workers. Both Microsoft Teams and Meta’s now-defunct Workplace have been pitched as tools for waged workers to differentiate themselves from Slack.
Overcrowding and Over-capitalization
The market has become overcrowded and probably over-capitalized, especially with the rise of new technologies like AI and automation. Many companies are struggling to find their niche and secure funding, leading to consolidation and acquisitions like JobGet’s purchase of Snagajob.
Impact on Workers
The acquisition may have a significant impact on workers in the hourly and frontline industries. With fewer job platforms available, workers may face increased competition for jobs, potentially driving down wages and benefits. On the other hand, a consolidated market could lead to more efficient job matching and better working conditions.
Future of JobGet
As the largest job platform targeting hourly and frontline workers in the US, JobGet will have significant influence over the industry. The company’s growth and acquisition strategy suggest that it is well-positioned to capitalize on the shift towards a gig economy. However, the success of JobGet will depend on its ability to balance the interests of workers, employers, and investors.
Conclusion
The acquisition of Snagajob by JobGet marks a significant development in the hourly and frontline job market. While it may lead to increased competition for workers and potentially lower wages, it also presents opportunities for more efficient job matching and better working conditions. As the industry continues to evolve, it will be essential to monitor the impact of this acquisition on workers and employers alike.
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