4.2. Sharing Economy Business Models: Organization of Gig Economy Workers

Wonderschool Model [171]

Another emerging trend in the early care and education industry is the “uberization” of care. The concept is based on the principles of the “sharing economy” (i.e., Uber and Airbnb). The idea was originally conceived by a child care startup named Wonderschool [172]. As with the sharing economy business model, Wonderschool helps educational professionals start their own business and meet the needs of caregivers across the country [173].

The company serves as a facilitator for qualified child care providers to open their own in-home child cares or preschools. Wonderschool helps educators with administrative tasks, licensing, marketing and program set up, including setting tuition rates, managing program discounts and accepting government subsidies from qualifying caregivers. In exchange, the company asks for 10 percent of the tuition. Some of the benefits of in-home care are smaller class sizes, mixed age groups and having the same person providing care to kids throughout the years.

Wonderschool also helps to connect caregivers to alternative providers in case their preferred provider needs time off. According to Wonderschool, educational professionals who use their services are making an average of $78,000 per year [174]. Nevertheless, this model has only been tested in large, urban areas, like Los Angeles, New York and San Francisco, so it would need to be adapted to the reality of providing care in rural communities, including the ability of caregivers to pay for care.

In the case of West Virginia, certified teachers could have their own in-home child care and provide more flexible services to working parents and caregivers (e.g., more flexible hours for shift workers). That is, a sharing economy platform could help teachers make more money while allowing a higher number of individuals with dependents to study or go to work. Additionally, stay-at-home parents are a key demographic that could be reached through such model – about a third of Wonderschool’s directors were non-working parents before they joined the platform. The sharing economy model offers an innovative way to make money for parents who are not able to work outside of their homes and would like to supplement their household income.

MyVillage Model

The MyVillage model is designed to support educators who either intend to or currently provide early education and care to children in a home setting [175]. MyVillage – borrowing from the adage, it takes a village to raise a child – is a startup, for-profit company with operations in Colorado and Montana that partners with educators to transform their homes into high quality learning environments. The company then connects families with home-based child care options. MyVillage provides support with navigating the licensing system, starting a program, training, business coaching as well as a free website, marketing toolkit and program insurance. The company also offers free tools for billing, financial management and scheduling as well as discounts on memberships and supplies and ongoing operational support [176].

Some of the criteria to become a MyVillage educator include having a fenced in yard area and enough indoor space to house six children, being over 18 years of age and able to pass a background check, participating in the state’s quality rating and improvement system (QRIS) and using approved curriculum [177]. However, as long as providers abide by these general guidelines, they have the flexibility of designing unique programs tailored to the needs of their communities.

Under this model, in-home child care providers have access to a vast network of resources and support, which prevents them from feeling isolated – a common complaint among home-based providers. For instance, a unique feature of the model is that educators have access to an Early Childhood specialist near their in-home child care business to text or call at any time in case they need assistance. There are no fees to join MyVillage, but once an in-home child care business is established, the company charges a monthly fee for its services and support.

In West Virginia, for instance, educators and stay-at-home parents who have passion for kids and a business degree, or some sort of business background, could capitalize on this opportunity to earn an income from home while putting their skills into practice and contributing to increase the supply of child care offerings. Similarly, in the case of adult dependent care, there is an opportunity for the development of a website or app that would connect home caregivers to clients in need of such services, especially family members who provide paid caregiving services through the Lighthouse Program, and would like to earn additional income by providing care to others (See “Home Care and Select State and Federal Programs”).