A startup with Columbus roots is expanding for the first time outside the confines of Ohio’s capital city, bringing its first-of-a-kind marketplace for child care services and more to Cincinnati.
Tandem, which helps families find babysitting, house cleaning and pet care connections on its platform for free, is now officially open to local users, effective Aug. 1. It’s the first new market for the 3-year-old company.
CEO and co-founder Olivia Weinstock told me Cincinnati should serve as a great compliment to the ecosystem it’s built in Columbus. It will also prove a good test as company looks to expand throughout Ohio — and beyond.
“We definitely considered larger markets like Chicago or New York, but the way our product is set up right now, we think it'll translate easiest to a geography most like Columbus,” she said. "Cincinnati, similar to Columbus, has multiple neighborhoods that are very family friendly, young neighborhoods with good schools. This will really help us prove out our ability to expand further and in hopes of eventually being nationwide."
Weinstock founded Tandem in 2019. For years, she had worked as a nanny/babysitter, running a summer camp essentially out of her backyard. That gave her access to a large network of families, who often asked her to recommend sitters when she was not available.
Tandem landed a $5 million seed investment from Ohio venture juggernaut Drive Capital, now a $2.2 billion firm, and Weinstock opted not to return to college to build out the idea.
Tandem works by automating what’s typically a word-of-mouth referral process for help.
“I saw this need,” she said.
Families can post babysitting jobs — for occasional, last-minute or regular care — and connect and match with background-checked care providers based on their preferences. A review system is in place to vet workers.
While it’s still primarily a resource for child care, Tandem is also used for pet sitting, house sitting, lawn work, housecleaning, odd jobs and more.
It’s biggest differentiator from a Juggle, Care.com or Sitting Made Simple — it’s completely free on either side of the marketplace to use.
“To be competitive in this market, we knew we wanted to be 100% free from the get-go. Typical marketplaces, you're losing a 30% cut you’re paying fees or subscriptions,” Weinstock said. “We've eliminated that process, which has led to a lot higher retention and engagement rate.”
Another unique factor: Tandem is perhaps playing a larger role as a fintech. All payments occur through Tandem, and providers can save their earnings, spend their funds via an issued Visa debit card or transfer the money to a regular bank account (Tandem doesn’t charge users but earns a small fee on financial transactions).
Weinstock said the goal is to add more financial features: Tandem could serve as a mobile banking app, or providers could access a high-yield savings account. The platform could manage their tax payments as well.
“We're definitely in a different corner,” she said. “For hourly paid workers who are working for a lot of different people in a lot of different industries, it’s a super standardized model with everything built in.”
Part of its rollout will include networking with local businesses and corporations to increase awareness — the company has been a frequent resource for employees looking for childcare — or backup care when daycares closed frequently during the pandemic.
In central Ohio, Tandem has built an audience of 10,000 users — 6,000 on the supply side and 4,000 on the demand side. Weinstock’s optimistic the company, recently named a 2022 Columbus Inno “Startup to Watch,” will see similar growth in Cincinnati.
"We think there's a lot of opportunity,” she said.
