Ask TIA: Homejoy shuts down. Does that spell trouble for on-demand startups?

Homejoy was one of the on-demand startup darlings. But it will be ceasing operations on July 31, founder Adora Cheung wrote in a blog post. She explained to Recode that the four lawsuits it was fighting over whether its workers should be classified as employees or contractors was the deciding factors to shut down the company.

Prior to its public shut down, it was also reported that the company was facing problem in revenue growth. Homejoy isn’t the only on-demand company to face legal pressure. Companies like Uber and Airbnb are also facing the same pressure. That makes me wonder how the Homejoy case will affect investors’ confidence and the entire on-demand service industry.

So TIA community, what do you think? Does Homejoy’s demise spell trouble for on-demand startups?