Madison, Wisc.-based American Family Insurance has launched a new tech-forward subsidiary in Chicago to help match people with short-term gigs.
Moonrise, the on-demand jobs platform, first began matching workers with gigs in January, and since then, has matched workers with “several thousand” shifts, according to Kara Kaplan, the startup’s co-founder and CEO. Kaplan is also the co-founder of Chicago's online gift card marketplace startup Giftbar.
The jobs available on Moonrise range from customer service to inventory roles for a number of companies. Kaplan said one of the largest employers Moonrise works with right now is Enterprise Rent-A-Car, which offers shifts for car detailers and lot attendants. Nordstrom Rack also lists shifts on Moonrise.
“Our workers really value variety,” Kaplan said. “They’re not really looking to do the same kind of shift work on a day-to-day basis.”
Moonrise’s concept was developed by the innovation team at AmFam after the company identified a problem occurring at one of its other subsidiaries, The General, a car insurance company. The General’s customers were struggling to pay their bills on time, mainly because they couldn’t afford it. That’s when AmFam began looking for ways to help those struggling financially to make ends meet.
On average, the hourly wage for shifts on Moonrise ranges from $10 to $15, and workers can be paid as soon as 30 minutes of completing a shift, but no later than 24 hours from the time of completion. The platform also gives workers flexibility in that they can make their own hours.
Moonrise says it wants to appeal to everyone looking for short-term work, but the startup does vet its workers to find the most reliable ones. Like applying for any other job, applicants have to submit work history and undergo a background check to be approved. So far, Kaplan said Moonrise has received more than 3,000 applications.
The startup, which currently employs 17 people in its West Town offices, isn’t the only company working in the on-demand staffing industry. Shiftgig, another Chicago-based startup that connects workers with short-term gigs, has been around since 2012 and has raised more than $59 million in venture capital funding.
Like Shiftgig and other staffing agencies, Moonrise makes it money with a markup fee it charges employers who list jobs on the platform. But because the startup is wholly owned by AmFam, Kaplan said it is unlikely Moonrise will ever raise VC funding.
Though AmFam is based in Wisconsin, Kaplan said the insurance company chose to launch Moonrise in Chicago because of its growing tech ecosystem.
“Chicago is viewed as a great city for tech startups,” Kaplan said. “Not that Wisconsin doesn’t have that, but obviously, Chicago is a much larger market. And due to its close proximity to Madison, it made it an easy choice.”
Right now, Moonrise only offers jobs in Chicago and its surrounding suburbs, but Kaplan said it will expand to other states, such as Tennessee and Ohio, by early 2019.
“We’re really trying to disrupt how individuals look and find extra income opportunities," Kaplan said. "And on the employer side, we’re trying to make it easier for employers to contend with labor shortages and give them access to reliable workers when they need it most.”
