JobGet, a platform akin to LinkedIn for hourly workers, has acquired its competitor, Snagajob.

If you are an hourly worker, the number of go-to options you have for finding new jobs is shrinking a little.
JobGet, a platform akin to LinkedIn for hourly workers, has acquired its competitor, Snagajob.

If you are an hourly worker, the number of go-to options you have for finding new jobs is shrinking a little. JobGet, a Boston-based startup that operates an hourly job-hunting site with social features built in, à la LinkedIn, is snapping up Snagajob, one of its rivals in the U.S. market.

JobGet said this would make it the biggest job platform focusing on targeting hourly and frontline workers, covering 100 million people in the U.S.

But let's be clear: that's not its user base JobGet won't share information on how many active users it counts except to note that it's now working with tens of thousands of customers and helped secure millions of jobs Snagajob says it has 3.6 million monthly active users and filled 40,000 jobs at 14,000 employers.

Those terms weren't disclosed. For comparison, however, JobGet last raised at a $440 million valuation in 2022, when it raised $52 million, PitchBook reported. JobGet also recently raised an undisclosed amount from Flow Capital, the database says, although JobGet contests that. Flow and JobGet were familiar with one another: In June of this year, JobGet acquired a software provider focused on recruiting, called Wirkn, from Flow's portfolio- again for an undisclosed sum.

The picture is a bit murkier for Snagajob. The company has been around for 25 years, back to the first dot-com boom, and had raised a pretty astonishing $387 million in total from investors that include StarVest and Rho Ventures. But its last valuation of $178 million on PitchBook dates from a decade back, so it's not clear how that relates to its worth today.

The reason it has now sold up to JobGet likely is part of the necessary consolidation in the space.

Over the last few years, we have seen a burst of activity from tech companies putting together social, recruitment, and management tools focused on hourly workers.

Both Microsoft Teams and Meta's now-defunct Workplace were pitched to waged workers, partially as a way of differentiating themselves from Slack. Dozens of startups launched and raised tens of millions of dollars to focus on the opportunity presented by frontline, waged, and hourly workers. Recent highlights include TeamBridge landing $28 million, Bandana securing $8.5 million, Fountain raising $85 million, and Wagestream securing $175 million.

That spells an overcrowded—and probably over-capitalized—market, especially at a time when suddenly the whole game may change with AI. And later-stage funding is just not as robust as it used to be.

That means more firms will combine their efforts to achieve better scale around the technology they are investing in.

JobGet, again similar to the above LinkedIn analogy, has social mechanics as well, and its company considers it "for the needs of the TikTok generation." One such element is "JobGenie," which it aligns with a "For You" page using AI and other instruments to personalize the job recommendations for the users. It also has instant interview scheduling and a number of such features to reduce the time between discovering an opening and securing a new position.

"With access to the resources on JobGet's platform, Snagajob's job seekers and employers will continue to have a best-in-class experience and make meaningful employment connections," says Snagajob CEO Keith Forshew. Of course, Snagajob's users fit well with JobGet's TikTok remit — among its trending searches are several jobs for teenagers.

"JobGet was founded to address a real, urgent need-the challenge that everyday workers face in finding jobs and that employers face in finding quality candidates," said Tony Liu, founder and CEO of JobGet, in a statement. "With Snagajob as part of our platform, we are furthering our mission to create accessible pathways to employment for everyday workers while empowering employers to connect with quality candidates instantly and efficiently."

Blog
|
2024-11-16 19:49:44