If you're an hourly worker, your options for finding a new job are slightly reduced. JobGet, a Boston-based startup that operates an hourly job site with LinkedIn-like social features, is acquiring one of its rivals in the U.S. market, Snagajob.
JobGet claims this makes it the largest job platform for hourly and frontline workers in the U.S., covering 100 million people.
But to be clear, that's not the company's user base. JobGet doesn't reveal how many active users it has, other than to say it works with tens of thousands of customers and helps secure millions of jobs. Snagajob says it has 3.6 million monthly active users and 40,000 job openings across 14,000 employers.
Financial terms of the deal were not disclosed. But for context, JobGet was last valued at $440 million when it raised $52 million in 2022, according to PitchBook. The database also states that Jobget also raised an undisclosed amount from Flow Capital this month, which Jobget disputes. Flow and JobGet were already acquainted. In June of this year, JobGet acquired Wirkn, a recruitment software provider that is part of Flow's portfolio. The amount is also not disclosed.
In the case of Sunagajob, the photo is a little cloudy. The company is 25 years old (yes, dating back to the first dot-com boom) and has raised a whopping $387 million in funding from investors including StarVest and Rho Ventures. But PitchBook's last valuation of $178 million was 10 years ago, so it's unclear how that relates to its value today.
As for why JobGet is now selling so well, it's probably part of the inevitable consolidation in this space.
In recent years, we've seen a growing movement among technology companies to build social, recruiting, and management tools targeted at hourly workers.
Microsoft Teams and Meta's now-defunct Workplace have both been touted as tools for wage earners to differentiate themselves from Slack. Dozens of startups, including JobGet, have launched and raised tens of millions of dollars targeting opportunities for front-line wage and hourly workers. Recent examples include $28 million to TeamBridge, $8.5 million to Bandana, $85 million to Fountain, and $175 million to Wagestream.
This means the market will be crowded and possibly overcapitalized, especially when suddenly the entire game could be changed by AI. Also, funding for late-stage startups is not as strong as it used to be.
This means more companies are consolidating the technologies they invest in to scale.
JobGet follows the LinkedIn analogy, with social mechanics and describes itself as built “for the needs of the TikTok generation.” One of its features, “JobGenie,” can be likened to a “For You” page that uses AI and other tools to personalize job listings for you. We've also built in instant interview scheduling and other features to speed up the time between finding a job and securing a new position.
“By accessing the resources of the JobGet platform, Snagajob job seekers and employers can continue to provide best-in-class experiences and build meaningful employment relationships,” said Keith Forshew, CEO of Snagajob. . Notably, Snagajob's users seem to fit well with JobGet's TikTok remit. Its trending search includes many jobs for teenagers.
“JobGet was founded to address a real and urgent need: the challenges faced by everyday workers in finding work and the challenges faced by employers in finding quality candidates. ” Jobget founder and CEO Tony Liu said in a statement. “With Snagajob as part of our platform, we are making employment more accessible to everyday workers while enabling employers to connect with high-quality candidates instantly and efficiently.” We will further our mission of creating roads.”