Is this model scalable and profitable? I have serious doubts. I see too many similarities to onsite pc repair services of the past like nerd on site, etc. This is at best a lifestyle business opportunity.
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.
Just to comment on your comparison to PC onsite service company... I think if they really market this thing everywhere as 1 trendy new semi-immediate, reliable iphone repair, it could do pretty well vs. the many small onsite pc repair businesses. From my own experience, people are consistently posting pictures of smashed IPhone screens on facebook. (and i've even driven over my own iphone myself, don't ask). I think it's a lot more common for a typical 16-30 yr old smashing their Iphone, wanting to get it fixed immediately vs. their computer not working for who knows what reason being much more serious/complex issue.
If you look through iCracked's fix-my-device menu, there aren't many options -> 3 devices (iPad, iPod, iPhone), 3 problems (Screen Replacement, Water Damage, Battery Replacement). If iCracked techs can repair these problems quickly, maybe 3+ service calls per day isn't crazy. In other word's the company's core repair call seems more straightforward than Geek Squad's.
Funny things with startups, it's always the ones you least expect that hit the ball out of the park... let's not forget there are a half a billion iOS devices out there and lots of butterfingers
I wish you'd expand into third-party onsite tech service for other products. i.e. if I were deploying hundreds of devices in the SFBA, if I could pay your techs $x to take a y hour course online (or in a lab) to get qualified to work on a new item, then pay them per onsite service dispatch.
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.
Wow, awesome. (I've never broken a phone or tablet, only a Kindle and an old iPod water damaged, but I can see how a $200-800 device you carry around could be at risk of damage.)
Off Topic, but I don't really understand why TechCrunch would choose to refer to iCracked as the "Uber" for iPhone repairs when the AAA analogy is significantly better.
It's perfectly understandable. AAA is an old company, and Uber is the hot new and often controversial tech company. Now whether you agree with how they worded it.. that's a different story.
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.