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April 07.2025
2 Minutes Read

How Thumbtack Thrives with AI Amidst a Slow Real Estate Market

Thumbtack app search interface for home cleaning services.

Harnessing AI to Transform Home Services

Despite a slump in the real estate market, home services company Thumbtack is thriving by revolutionizing how homeowners connect with professionals. The platform has reported a remarkable $400 million in revenue for fiscal 2024—an increase of 27% from the previous year. This impressive growth can be attributed to its innovative approach that leverages artificial intelligence (AI) to simplify the process of finding and hiring contractors.

The Shift from Traditional to Digital

As Marco Zappacosta, co-founder and CEO of Thumbtack, points out, the future of home services is moving online, mirroring transformations seen in travel and transportation. Unlike these industries, however, home services encompass a vast array of options, with Thumbtack offering connections to professionals in approximately 500 categories, from plumbing to electrical work.

Making the Search Process User-Friendly

One of Thumbtack’s standout features is its AI-powered search tool, launched last year, which empowers users to describe their home issues in conversational language. This stands in stark contrast to traditional keyword searches that can be daunting for those unfamiliar with household repairs. Moreover, Thumbtack is rolling out a new feature allowing users to upload photos of their issues, further simplifying the search for help. This approach is not just functional; it aims to make the experience feel more like a friendly chat rather than an intimidating search.

The Future of Home Maintenance

As AI technology advances, the potential for a more personalized and efficient home maintenance experience grows. Zappacosta emphasizes the goal of arming users with relevant information at every stage of the booking process, enhancing their confidence in making decisions about home repairs. This shift from passive searching to active engagement could reshape how homeowners approach home maintenance, making it easier and more accessible.

Why This Matters for Small Business Owners

For small and medium-sized business owners in the service sector, understanding how to integrate AI solutions like those at Thumbtack could be pivotal in enhancing operational efficiency. The insights gained from Thumbtack’s model can serve as a roadmap for leveraging technology to improve business outcomes. Embracing digital tools is not merely a trend; it is a necessary evolution in a landscape where consumer expectations continue to rise.

This remarkable success story of Thumbtack amidst a slow real estate market highlights the profound impact of embracing technology in the service industry. As AI systems become more integrated into daily operations, businesses that harness these tools will not only survive but thrive. Reading about these innovations is just the first step to understanding how you can implement similar strategies in your own business.

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