Genius, as Thomas Edison famously declared, may owe far more to perspiration than to inspiration, but Leah Busque’s revolutionary startup was born in a moment of profound laziness. It was a wintry night in February 2008, when Busque, a 28-year-old engineer at IBM in Cambridge, Massachusetts, realized that she needed dog food for her yellow lab, Kobe. She wanted nothing more than to get someone else to trudge outside in the snow. “I thought, wouldn’t it be nice if there were a place online you could go,” she says. “A site where you could name the price you were willing to pay for any task. There had to be someone in my neighborhood who was willing to get that dog food for what I was willing to pay.”
Inspired, she quit her job four months later and started a company, originally called RunMyErrand, with money from angel investors and an incubator. The site launched in September 2008, and by the following March, its roughly 100 registered “runners” had performed hundreds of tasks. Today the site, since renamed TaskRabbit, has more than 1,500 runners in San Francisco, Boston, Los Angeles, and Orange County fulfilling up to 3,000 tasks per month—everything from assembling IKEA furniture to making a beer run.
Think of TaskRabbit as an eBay for real-world labor. When users, called senders, post a task, they also invisibly declare the maximum amount they’d pay to have it completed. Runners then bid on the task by declaring the minimum amount they would accept. Unlike on eBay, though, senders can choose freely from among the bids, since the reviews and experience levels of runners can vary significantly: Highly rated runners—or those who happen to be available immediately for a rush job—can command significant premiums. Tasks range from courier assignments that can take just a little while to jobs like moving help that can take hours and are often scheduled up to a week in advance. TaskRabbit takes a 12 to 30 percent cut of each transaction; the higher percentages are deducted from lower-value jobs. Customers pay by credit card, and the runner’s share gets deposited into a TaskRabbit account, with checks cut every Friday.
To keep the rabbits scampering, the site employs some serious game mechanics. A leaderboard ranks the top runners, displaying the level that each has achieved and their average customer review. The runners also see a videogame-style progress bar showing the number of additional points they need to jump to the next level. Points are awarded for everything from bidding accurately on a task (15 points for being within 15 percent of the sender’s maximum price) to bidding quickly (15 points for bidding within the task’s first 30 minutes) to emailing friends and urging them to join TaskRabbit (three points per email). The level system is exponential: Moving from level 0 to level 1 takes only 60 points, while going from level 20 to 21 requires adding roughly 1,700 points to your tally. The highest level reached so far is 23, achieved only by a 58-year-old former military officer in San Francisco named Alex K. (All the runners are known by their first name and last initial.)
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