iCracked (YC W12) Is Blowing Up With A New “Uber” For iPhone Repairs Service
techcrunch.com
techcrunch.com
About 10 years ago, I operated a business of onsite pc service for small businesses. The largest cost was unbillable time spent on traveling from one customer to the next or sitting idle.
The article mentions tech, on contract, making $70,000-100,000 (seriously doubt these numbers from my own experience). Generously assuming each repair generates $100 in revenue, a tech has to fix 700-1,000 devices per year to make the reported number. With 350 tech on contract and iCracked eying "eight figure" (~$10 million) in revenue of which 50% from repair. At $5 million dollar in repair revenue, each tech is only generating about $14,000 in revenue.
Assuming tech works 8 hours a day 5 days a week, that means repair at least 3 devices a day. It is unlikely any organization can generate 3 calls every day for each tech within a short area.
IMO, this business is a dud.
Dell, Lenovo, Cisco, etc. do this for really high end products or large contracts. Generally it's more cost-effective to RMA items from small customers, but it would be cool to have the option of selling onsite service.
But power to iCracked, those are some seriously absurd numbers.