November 30, 2023
Wonolo, a staffing platform for blue-collar and labor contractors ‘left within the abet of by Silicon Valley’, raises $32M
A recent survey found that around 20 percent of all jobs in the U.S. are held by contractors — people who take on work based on a particular project or fixed-term period, not as full-time, permanent employees. We’ve definitely seen that trend play out in Silicon Valley, both among the knowledge workers building tech products…

A latest survey learned that round 20 % of all jobs within the U.S. are held by contractors — these that decide on work per a explicit challenge or mounted-period of time period, now not as plump-time, eternal workers. We’ve indubitably viewed that pattern play out in Silicon Valley, each among the many files workers building tech merchandise and among the many on-count on of startups that count on contractors to transport goods and of us, dapper properties and more. However it indubitably also shall be going down in other locations.

This day, a startup referred to as Wonolo, which has constructed a platform for workers to join with agencies that wish to workers up rapid specifically in labor-primarily based mostly roles in areas love retail, manufacturing and birth — or, as it describes itself “diversified industries left within the abet of by Silicon Valley’s future of work applied sciences” — has raised $32 million to meet the blue-collar count on of.

The firm says it now has 300,000 users registered on its platform, and it connects would-be workers with firms that consist of Coca-Cola, Papa John’s and Uniqlo. Workers can post jobs “in seconds” with jobs filled “in minutes,” with payment processed after a job is complete (pricing is now not disclosed). Wonolo also vets workers earlier than onboarding them to the platform.

The Sequence C round used to be led by Bain Capital, with participation from DAG Ventures, Sequoia Capital, Base10, AMN Healthcare and Cendana. Because VCs seem to be flush with money for the time being — Bain, as an illustration, closed a $1 billion fund honest final week — they are pumping rather a few it into the startups that seek for the most promising. Wonolo final raised money easiest seven months within the past — a more modest $thirteen million led by Sequoia.

This latest round, the firm said, shall be extinct to amplify its have workers (now not certain if these shall be decreased in dimension or salaried workers), besides to proceed to amplify its industry.

The timing is necessary here. As of this week, we’re now officially within the vacation period, which on the total sees a seasonal bump in industry that leads to the need for more short-period of time workers.

Firms hiring contractors would possibly possibly possibly possibly need within the past was to staffing agencies to back bear that need — but some other or much less competitor for Wonolo.

In the intervening time, the upward push of tech and an rising prevalence of the contractor mannequin has brought in a second be aware of competitors — from Silicon Valley. Shiftgig is but some other startup that has created an efficient platform for would-be contractors to post their availability, and would-be employers to snap them up. (As some extent of comparison, Shiftgig had some 15,000 workers and 1,500 firms/employers registered on its platform as of its final funding.) Uber has been trialing Uber Works for service contractors (wait workers, safety and heaps others). There is Flexy within the U.K. And I wouldn’t be bowled over at all if we look Amazon at final turning its have short-period of time and contract staffing efforts true into a wider industry, given the sample it has taken so many diversified merchandise that it constructed first for its have inner utter.

In that wider context, it’s now not certain what Wonolo’s valuation is for the time being, nonetheless per PitchBook the firm had a modest post-money valuation of honest below $Forty eight million in April of this three hundred and sixty five days. That would possibly possibly possibly possibly place apart Wonolo, at a conservative number, at honest $eighty million, nonetheless I’m guessing that the calibre of the backers, the rapidity of the funding rounds and the dimensions of the industry speaks to that figure being greater. (Wonolo has now raised $60 million in complete.)

Contract employment changing into more approved comes with a bunch of change-offs. For the increased flexibility, and presumably stable profits on story of you are filling an urgent need, you are going to continually salvage fewer benefits with these roles, and much much less job safety. On the diversified hand, contract roles can change into a extraordinarily useful stopgap or high-up for these that both are between eternal roles or simply are seeking to decide on on more hours to bump their profits (optimistically now not on the expense of their neatly being or dwelling existence).

“After we primarily based Wonolo in 2014, we had a two-section aim of fixing the underemployment epidemic for People while simultaneously getting rid of the short-period of time staffing scarcity tidy brands face,” said Yong Kim, CEO and co-founder at Wonolo, in an announcement. “Over the last four years, now we have scaled our industry mannequin and constructed a thriving marketplace that connects tens of millions of underemployed workers with the roles they need. Bain Capital Ventures is offering us with the different to place apart Wonolo’s know-how into the palms of major Fortune 500 firms to back upend extinct staffing objects.”

Wonolo cites stats from the Bureau of Labor Statistics that learned that “the number of originate positions within the US exceeded the number of job seekers for the first time on file.” Particularly, five million People had been learned to be “underemployed,” where they had been working much less than 30 hours per week. A marketplace love Wonolo’s presumably helps these of us high up their hours in other locations.

“Wonolo is reinventing the manner of us procure hourly work. Their know-how platform creates more flexibility for underemployed workers and fills hiring wishes for understaffed firms insanely speedy and at a disruptively decrease tag,” said Jamison Hill, senior necessary at Bain Capital Ventures, in an announcement. “We are wrathful to lend a hand the Wonolo crew in pursuing their big mission of bringing flexible and fulfilling work to all people.” Hill is becoming a member of Wonolo’s board with this round.

Interestingly, while it appears contract employment is a mannequin that is here to achieve, Wonolo appears to be focused also on giving of us the ride and connections to at final strive to catapult themselves into more plump-time positions.

“We concept we would address [the idea of being able to deal with unpredictability] greater than temp staffing, and we realized the antidote used to be flexibility on the worker facet,” co-founder AJ Brustein told us in April of this three hundred and sixty five days. “We would possibly possibly possibly possibly match them with these jobs that would possibly possibly possibly possibly unpredictably pop up. After we dug into it, we realized flexibility used to be one thing that used to be honest completely missing for workers. We took a extraordinarily diversified blueprint to the manner that folks will continually recruit expertise for staffing agencies or their have workers. We are taking a seek for at personality traits.”