If you’re 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 acquiring Snagajob, one of its rivals in the U.S. market.
JobGet claims this will make it the largest job platform targeting hourly and frontline workers in the U.S., covering 100 million people.
But to be clear, that’s not its user base — JobGet does not disclose how many active users it has, except to say that it is working with tens of thousands of customers and has helped secure millions of jobs. Snagajob says it has 3.6 million monthly active users and has filled 40,000 jobs at 14,000 employers.
The financial terms of the deal are not being disclosed. But for context, JobGet was last valued at $440 million when it raised $52 million in 2022, per PitchBook. The database notes that JobGet also raised an undisclosed amount this month from Flow Capital, although JobGet disputes this. Flow and JobGet were already acquainted: In June of this year, JobGet acquired a recruiting software provider in Flow’s portfolio called Wirkn, also for an undisclosed sum.
The picture is a little cloudier for Snagajob. The company has been around for 25 years (yes, dating to the first dot-com boom), and had raised a whopping $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.
As for why it has now sold up to JobGet, it’s likely a part of the inevitable consolidation in the space.
In the last several years, we’ve seen a flurry of activity among tech companies building social, recruitment, and management tools targeting hourly workers.
Both Microsoft Teams and Meta’s now-defunct Workplace have been pitched as tools for waged workers, partly to differentiate themselves from Slack. Dozens of startups, including JobGet, have launched and raised tens of millions of dollars to target the frontline, waged, and hourly worker opportunity. Recent examples include $28 million for TeamBridge, $8.5 million for Bandana, $85 million for Fountain, and $175 million for Wagestream.
That spells an overcrowded — and probably over-capitalized — market, especially at a time when suddenly the whole game may be changing with AI. Also, funding for later-stage startups is just not as robust as it used to be.
That means more companies are combining to get better scale around the technology they are investing in.
JobGet, in keeping with the LinkedIn analogy, has social mechanics, describing itself as built “for the needs of the TikTok generation.” One of its features is “JobGenie,” which it likens to a “For You” page that uses AI and other tools to personalize job recommendations for users. It also has built instant interview scheduling and other features to cut down 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,” said Keith Forshew, CEO of Snagajob. Notably, Snagajob’s users seem to fit well with JobGet’s TikTok remit — its trending searches include a number of 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.”
Source: finance.yahoo.com