The two top freelance websites are combining. Some reactions from a guy who has used them heavily — maybe $20k spent there this year — me.
venturebeat.com/2013/12/22/how-elances-merger-with-odesk-will-impact-the-freelance-space
1. Neither is very big. 30mm net revenue each. Total billings each around $350mm — 35,000 people earning 10k per year.
2. They are tenish years old each. Slow growth now I guess.
3. They have little unique technology. Nothing inside either tool helps you get work done better. Freelancers use their own tools and platforms etc etc.
4. Yet all their headroom statements are indeed true. The freelance world is large (20x bigger than them combined in the US) and growing.
So my conclusion is: very attackable opportunity. Somebody with
– better verticalization
– tools that enable the work to happen more simply
– less plaintext matchmaking
– perhaps less reliance on pure algo to match?
– uber-like pricing where they keep more than a flat 10% share
– reusable product or tech components
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