Owing to an “on-demand” society and incessant consumer demand for better value, the peer-to-peer marketplace continues to gain in popularity. Unicorns like Uber (NYSE: UBER) and Airbnb jump to mind as pioneers in the space, but the reality is that many much smaller, innovative companies are cropping up, and some with big names attached to them, like HeyBryan Media (CSE: HEY).
HeyBryan is named after HGTV DIY television star Bryan Baeumler, who not only is the face of the company, but also a major shareholder, media partner and advisor to HEY.
Decidedly different and nowhere near the scale of a behemoth like Uber, HeyBryan is focused on an overlooked market in the construction sector: small maintenance projects in the home-services industry. Launched a year ago, the HeyBryan app connects home-service experts to homeowners to complete handyman tasks like painting, cleaning, plumbing, yard maintenance, electrical work or furniture assembly. The upstart is growing steadily by capitalizing on the fact that traditional contractors dismiss this lucrative and underserved market.
Every year, Americans spend $340 billion on home maintenance and upgrades, while the home improvement market in Canada reached $47.9 billion in 2017. HeyBryan hasn’t announced any US expansion plans yet and is firmly focused on growth in their home market right now, but the scale and similarity of these markets is interesting.
The Market Environment
Mobile technology has dramatically re-shaped commerce today. It’s emergence is at the core of the so-called “gig economy” where independent contractors are engaged for short-term, temporary jobs, or “gigs.” To understand the prowess of this phenomenon, consider that there are 41 million adult Americans (i.e. consultants, freelancers, construction workers, etc.) that work independently at their career or to generate supplemental income. That’s a stunning 36% of the American workforce.
Peer-to-peer marketplaces like HeyBryan are the primary source for driving leads and booking jobs for these contractors today.
The marketplaces are now the go-to source for consumers too. Apps like Omni allow people to rent just about anything. Fiverr is a popular choice for people (or businesses) needing temporary help with media and illustrations.
When it comes to home-services, HeyBryan wants to find its app on devices in the 14 million households in Canada and the 126 million American homes.
A Growth Story Hitting the Ground and Sprinting
Subsequent to an official launch in Vancouver in November 2018, the HeyBryan app was introduced across the greater Toronto area in March. Measuring by customer and expert acquisitions utilizing HeyBryan, the app has been gaining traction across the two markets, which bodes well for launch into new markets going forward.
Since January, customer growth has averaged 115% per month to now have over 5,800 customers using the app. At the same time, expert growth has compounded at an average of 70% per month, equating to in excess of 1,500 home-service experts – all of which are fully vetted and approved by HeyBryan before listing – as part of the service.
Most importantly, month-to-month growth in the number of jobs booked and completed through the app has averaged 240% through mid-November.
This is critical because job completions are the primary source of revenue for HeyBryan. The company takes 20% from its home-service experts and 7.5% from customer transactions for every job run through its app.
The next major market launch for the HeyBryan app is Calgary this month. Investors will be eager to see what happens to the growth trajectory when the app is introduced to the 1.36 million people living in the southern Alberta city.
“We are conducting the app roll-out strategically by hitting the biggest markets in Canada first as we make tweaks based upon customer and expert feedback. The reception to date has been tremendously positive and we look forward to the next milestone of launching into Calgary in the coming weeks,” HeyBryan CEO Lance Montgomery told Baystreet.ca in a phone conversation.
“From our in-app payment system to our seasoned experts and preferred partners to our small-services focus, HeyBryan is clearly differentiated and people quickly recognize these qualities,” Montgomery continued. “We feel great about what we’re doing to provide much-needed expert services to people that can’t get traditional home contractors to even return a phone call because the job is too small.”
What’s in a Name? Everything
In an age where professional branding is the name of the game, HeyBryan has surrounded itself with household brands. Baeumler is a beloved television personality and most watched HGTV Canada star in the country’s history. He has seven shows syndicated in more than 30 countries, the latest of which is called “Island of Bryan,” where the Baeumler family overhauls a resort in the Bahamas. Along with his wife, Sarah (an HGTV Canada designer), Bryan Baeumler has built a construction empire in Canada with the brand now spreading across the planet.
Baeumler’s name certainly opens doors to deals which get sealed by the opportunity with the HeyBryan model.
For instance, HeyBryan partnered with Canada’s top direct-to-consumer mattress company, Haven Mattress, last month. Haven’s signature products are featured in popular national TV shows including CBC’s Dragon’s Den and HGTV’s Island of Bryan.
Per the new pact, HeyBryan is a preferred mattress removal company for Haven’s customers. Furthermore, HeyBryan users are offered the chance to buy a new Haven mattress at a discount. Haven CEO Scott Amis said that when making deliveries, his team frequently fields questions along the lines of “Do you know anyone that can…?” “Well, now we do,” says Amis.
HeyBryan also recently partnered with The Original CleanBoot®, the owner of a washable, reusable, 100% Neoprene overshoe with a patented extra-grip sole used by residential contractors to safely enter customer’s homes and keep their floor clean. Again, the two companies will benefit by exposing their brands within each other’s networks, while HeyBryan gets to drive home the importance of safety to its customers and experts.
A Growth Story Before Your Eyes
“Nothing in our business strategy is by accident,” said Montgomery, a serial entrepreneur, during the phone call. “We are filling a large gap in home maintenance with our technology and the numbers speak to that point.”
Montgomery conveyed that HeyBryan plans to keep building brand awareness through sponsorships at popular conferences like the Vancouver Fall Home Show and utilizing cutting edge marketing campaigns like they’re doing with JSU Solutions as the company accelerates launches throughout Canada in 2020.
With a market cap of only C$6.8 million (US$5.1 million), it’s highly likely that people won’t just be saying “Hey, check out this app,” but also “Hey, check out HEY stock.”
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