Angie's List
Angie's List
Type of business | Subsidiary |
---|---|
Founded | 1995 |
Headquarters | Indianapolis, Indiana |
Founder(s) | William S. Oesterle, Angie Hicks |
Key people | Thomas R. Evans, Chairman[1] Brandon Ridenour, CEO[2] Angie Hicks, CMO[3] |
Industry | Internet |
Services | Online marketplace, Review site |
Parent | ANGI Homeservices Inc. |
Website | www.angieslist.com [29] |
Angie's List is an American home services website. Founded in 1995, it is an online directory that allows users to read and publish crowd-sourced reviews of local businesses and contractors. Prior to July 2016, Angie's List was a subscription-only service, but is now free to all home owners as a subsidiary of ANGI Homeservices Inc.
Type of business | Subsidiary |
---|---|
Founded | 1995 |
Headquarters | Indianapolis, Indiana |
Founder(s) | William S. Oesterle, Angie Hicks |
Key people | Thomas R. Evans, Chairman[1] Brandon Ridenour, CEO[2] Angie Hicks, CMO[3] |
Industry | Internet |
Services | Online marketplace, Review site |
Parent | ANGI Homeservices Inc. |
Website | www.angieslist.com [29] |
History
William S. Oesterle and Angie Hicks founded Angie's List in 1995. The idea resulted from Hicks's search for a reliable construction contractor in suburban Columbus, Ohio, on behalf of Oesterle, a venture capitalist who was Hicks's boss. Hicks moved to Columbus to join Oesterle in creating Columbus Neighbors, a call-in service and publication with reviews of local home and lawn care services. The name and concept were based on Unified Neighbors in Indianapolis, Indiana. Hicks went door-to-door, signing up consumers as members and collecting ratings of local contractors.
After Hicks recruited over 1,000 members in Columbus within one year, she turned to Oesterle to raise money from investors to develop the business.[4] In 1996, the company bought Unified Neighbors from its creator and moved the company's headquarters to Indianapolis.
By 1999, the database of local services and reviews was moved to the Internet. In the following years, the customer base and business relationships grew throughout the United States, while expanding coverage to include additional services, such as health care and auto care.
Ratings methodology
Angie's List members grade companies using a report-card-style scale, which ranges from A to F; these ratings are based on the following criteria: price, quality, responsiveness, punctuality and professionalism.[9] Each company has its own page, which is composed of a description of its business along with the customer reviews. The aggregate grade is drawn from the combined reviews and grades given to the businesses from the consumers.
Criticism and controversies
A 2017 investigation by a Chicago news station found that many Local 'Angie's List Certified' contractors are unlicensed to do work. [10]
David Segal found that when subscribers post a negative review of a company to Angie's List, a staff member discusses it with the subscriber in an attempt to rectify the situation. After they "fix the problem" they will remove the complaint. [11]
Litigation
According to The Washington Post, in March 2007 SCS Contracting Group sued Angie's List and two members for libel because of negative reviews of the company. One of the sued members remarked, "if [contractors are] able to sue, then the value of Angie's List depreciates.... People aren't going to be willing to submit reviews if they could be threatened with a lawsuit."[12] On October 7, 2008, the plaintiffs dismissed the complaint against the two members. Summary judgment was later granted in favor of all defendants.[13]
In 2014, Angie's List Inc. paid $2.8 million to settle a lawsuit alleging that it automatically renewed members at a higher rate than they were led to believe.[14]
In August 2016, Angie's List has agreed to settle three lawsuits for a payment of $1,400,000. The class action lawsuits focused on Angie's List's acceptance of advertising payments from service providers, and whether those payments affect service providers’ letter-grade ratings, reviews, and place in search-result rankings. Angie's List denies plaintiffs’ claims, but disclosed that revenue from service providers can affect the order of search-result rankings of the service provider under certain settings. Moore vs. AngiesList.[15]
Financial information
On November 17, 2011, Angie's List began trading on the NASDAQ exchange under the ticker symbol ANGI. It priced 8.8M shares at $13 and opened for trading at $18, a 33% premium.[18]
In 2013, investors worried that the company had been in business for more than 18 years, yet never had shown an annual profit, and that valuations of the company were unrealistic based on the actual revenue the company produces.[21] But by 2015 growth estimates indicate a significant earnings-per-share growth, with a long-term growth rate at 19%. Combine this with stock estimates rising in 2015 by 13.3%, some Securities research firms such as Zacks Investment Research indicated ANGI is well-positioned for future earnings growth.[22]
On May 2, 2017, IAC/InterActiveCorp, owner of HomeAdvisor, announced that it had agreed to acquire Angie's List for $8.50 per-share (valuing the company at over $500 million). On October 1, 2017, IAC merged Angie's List and HomeAdvisor, renaming the merged company to ANGI Homeservices, retaining Angie's List ticker symbol and stock history.[7] [23] [24] [25]