History
Care.com was started by Sheila Lirio Marcelo, who came up with the idea when she had trouble finding care for her children and aging parents.[11][12] The platform helps match families to caregivers, including nannies, sitters, senior care providers, pet care providers, tutors and housekeepers.[13][14][15] The company provides two kinds of membership, basic and premium and also allows families to book caregivers on demand.[16][17][18]
In 2007, Care.com raised $3.5 million in a Series A funding round from Matrix Partners with participation from Reid Hoffman. Media reported allegations that Marcelo had met other companies in order to use their information to start Care.com, but a spokesperson for Matrix denied any claims of unfair treatment.[19]
In 2012, Care.com launched in the United Kingdom and Canada, and acquired Berlin-based Betreut.de, giving it a footprint in more than a dozen Western European countries.[20][21] In 2013, the Care.com app Karoo received a Webby Award under the social (handheld devices) category.[22] The app was later withdrawn.[23]
In November 2013, Care.com filed for an initial public offering with details of the IPO first revealed a month later.[24][25]
Prior to its IPO in January 2014, Care.com had raised $111 million in funding from investors including Matrix Partners,[26][27] Trinity Ventures,[28][29] New Enterprise Associates,[30] USAA,[31] and Institutional Venture Partners (IVP).[32] In January 2014, the company reportedly planned to raise $85.6 million by offering 5.35 million shares, at $14 to $16 each, on the New York Stock Exchange under the symbol "CRCM".[24]
In 2015, The Boston Globe reported about a couple defrauded by a nanny who had cleared the site's screening processes as well as other instances where families in the United States were suing the company for alleged negligence in properly conducting background checks.[36] In March 2019, The Wall Street Journal reported that the site listed day care providers as licensed in their state when they were not.[37] Care.com responded by eliminating unverified childcare listings created automatically but never claimed by the facility owner from the site and strengthening member screening procedures.[38][39][40]
In December 2019, holding company IAC announced its intention to acquire Care.com for $500 million, and completed the acquisition on February 11, 2020, at which time Care.com ceased trading on the NYSE. As part of the deal, IAC executive Tim Allen became CEO of Care.com.[41] During the COVID-19 pandemic, the company enabled several states, municipalities and non-profits to help frontline workers in those communities find care for their families.[42][43][44]
In August 2024, Care.com reached an agreement with the US Federal Trade Commission to provide $8.5 million in refunds to caregivers whom the company allegedly deceived about the number of jobs available on its platform and their payment rates, as well as to families for whom the company made it difficult to cancel their memberships.[45] However, the company emphasized that the settlement is in no way a validation of the FTC's claims but is meant to keep its focus on helping customers. Care.com also stated that it was prepared to litigate the case for several years if necessary.[46]
In June 2025, Care.com announced a new identity and tools to reflect its shift from primarily providing childcare to offering a broader range of caregiving services, including senior care, pet care, home help, and camp searches.[47]
