Angie's List

Angie's List is an American home services website. Founded in 1995, it is an online directory that allows users to read and publish crowd-sourced reviews of local businesses and contractors. Prior to July 2016, Angie's List was a subscription-only service, but is now free to all home owners as a subsidiary of ANGI Homeservices Inc.

Not to be confused with Annie's List.

Angie's List, Inc.
Type of businessSubsidiary
Founded1995
HeadquartersIndianapolis, Indiana
Founder(s)William S. Oesterle, Angie Hicks
Key peopleThomas R. Evans, Chairman[1]
Brandon Ridenour, CEO[2]
Angie Hicks, CMO[3]
IndustryInternet
ServicesOnline marketplace, Review site
ParentANGI Homeservices Inc.
URLwww.angieslist.com

History

William S. Oesterle and Angie Hicks founded Angie's List in 1995. The idea resulted from Hicks's search for a reliable construction contractor in suburban Columbus, Ohio, on behalf of Oesterle, a venture capitalist who was Hicks's boss. Hicks moved to Columbus to join Oesterle in creating Columbus Neighbors, a call-in service and publication with reviews of local home and lawn care services. The name and concept were based on Unified Neighbors in Indianapolis, Indiana. Hicks went door-to-door, signing up consumers as members and collecting ratings of local contractors.

After Hicks recruited over 1,000 members in Columbus within one year, she turned to Oesterle to raise money from investors to develop the business.[4] In 1996, the company bought Unified Neighbors from its creator and moved the company's headquarters to Indianapolis.

By 1999, the database of local services and reviews was moved to the Internet. In the following years, the customer base and business relationships grew throughout the United States, while expanding coverage to include additional services, such as health care and auto care.

In 2017, the company announced in a press release that they had 2 million subscribers in the year 2013.[5] In August 2015, it reported 3.2 million paid members.[6]

In July 2016, Angie's List was made a freemium service; the basic membership tier, which includes access to more than 10 million reviews, was made free, alongside subscription tiers offering additional functionality.[7][8]

Ratings methodology

Angie's List members grade companies using a report-card-style scale, which ranges from A to F; these ratings are based on the following criteria: price, quality, responsiveness, punctuality and professionalism.[9] Each company has its own page, which is composed of a description of its business along with the customer reviews. The aggregate grade is drawn from the combined reviews and grades given to the businesses from the consumers.

Criticism and controversies

A 2017 investigation by a Chicago news station found that many Local 'Angie's List Certified' contractors are unlicensed to do work.[10]

David Segal found that when subscribers post a negative review of a company to Angie's List, a staff member discusses it with the subscriber in an attempt to rectify the situation. After they "fix the problem" they will remove the complaint.[11]

Litigation

According to The Washington Post, in March 2007 SCS Contracting Group sued Angie's List and two members for libel because of negative reviews of the company. One of the sued members remarked, "if [contractors are] able to sue, then the value of Angie's List depreciates.... People aren't going to be willing to submit reviews if they could be threatened with a lawsuit."[12] On October 7, 2008, the plaintiffs dismissed the complaint against the two members. Summary judgment was later granted in favor of all defendants.[13]

In 2014, Angie's List Inc. paid $2.8 million to settle a lawsuit alleging that it automatically renewed members at a higher rate than they were led to believe.[14]

In August 2016, Angie's List has agreed to settle three lawsuits for a payment of $1,400,000. The class action lawsuits focused on Angie's List's acceptance of advertising payments from service providers, and whether those payments affect service providers’ letter-grade ratings, reviews, and place in search-result rankings. Angie's List denies plaintiffs’ claims, but disclosed that revenue from service providers can affect the order of search-result rankings of the service provider under certain settings.[15]

Financial information

In 2010, Angie's List raised a total of $25 million in capital from investors. In September 2010, Wasatch Funds and Battery Ventures invested $22 million.[16] In November 2010, Saints Capital led an additional funding of $2.5 million.[17]

On November 17, 2011, Angie's List began trading on the NASDAQ exchange under the ticker symbol ANGI. It priced 8.8M shares at $13 and opened for trading at $18, a 33% premium.[18]

Shares have remained below $13 since March 2014.[19] Before 2015, the company had been dependent on capital infusions from investors to stay afloat. Angie's List had its first profitable year since its founding in 1995 in 2015.[20]

In 2013, investors worried that the company had been in business for more than 18 years, yet never had shown an annual profit, and that valuations of the company were unrealistic based on the actual revenue the company produces.[21] But by 2015 growth estimates indicate a significant earnings-per-share growth, with a long-term growth rate at 19%. Combine this with stock estimates rising in 2015 by 13.3%, some Securities research firms such as Zacks Investment Research indicated ANGI is well-positioned for future earnings growth.[22]

On May 2, 2017, IAC/InterActiveCorp, owner of HomeAdvisor, announced that it had agreed to acquire Angie's List for $8.50 per-share (valuing the company at over $500 million). On October 1, 2017, IAC merged Angie's List and HomeAdvisor, renaming the merged company to ANGI Homeservices, retaining Angie's List ticker symbol and stock history.[7][23][24][25]

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References
  1. "Angie's List Elects Thomas R. Evans as Chairman of the Board". The Street. October 7, 2016.
  2. Marino-Nachison, David (November 8, 2018). "ANGI Homeservices Rises as a New CEO Prepares to Step In". Barron's.
  3. McGowan, Dan (September 8, 2015). "Angie's List Hires CEO with Big Name Credentials". Inside Indiana Business.
  4. Evans, Teri (October 6, 2010). "No Free Stuff Here: At Angie's List, Members Pay". Wall Street Journal. Retrieved August 2, 2011.
  5. Tamborello, Joe (January 16, 2017). "Angie's List boasts 5 million members, growth". Indianapolis Star.
  6. Kopytoff, Verne. "Angie's List names former Best Buy executive as CEO". Fortune. Retrieved September 9, 2015.
  7. "Golden-based HomeAdvisor completes purchase of Angie's List". Denver Post. Retrieved October 2, 2017.
  8. Mercado, Darla (July 13, 2016). "Need a plumber? Angie's List reviews are now free". CNBC. Retrieved July 27, 2016.
  9. Schein, Amy. "Brownstone Publishing, LLC". Hoovers.com. Hoovers. Retrieved January 30, 2007.
  10. Rogers, Phil; Smyser, Katy; Copenhagen, Courtney (May 1, 2017). "Many Local 'Angie's List Certified' Contractors Unlicensed". NBC Chicago.
  11. David Segal (December 21, 2013). "A Complaint Registered, Then Expunged". The New York Times. p. BU3. Retrieved October 18, 2014.
  12. Kelly, John (March 13, 2007). "Homeowner's Web Gripe Draws Contractor Lawsuit". Washington Post.
  13. "Stephen C. Sieber v. Brownstone Publishing Co" (PDF). Theiceloop.com. October 2010. Archived from the original (PDF) on December 26, 2010. Retrieved July 21, 2011.
  14. "Angie's List to pay $2.8M in membership-fee settlement". Ibl.com. Retrieved October 18, 2014.
  15. "Moore v. Angie's List, Inc. Case No. 2:15-cv-01243 (E.D. Pa.) - Home". www.moorevalsettlement.com. Retrieved August 30, 2016.
  16. Merino, Faith (September 21, 2010). "Angie's List strikes big with $22M". VatorNews.
  17. Merino, Faith (November 11, 2010). "Angie's List raises $2.5M adding to $22.5M". VatorNews.
  18. "Angie's List gains 25% in IPO". CNN. November 17, 2011.
  19. Public Record, NASDAQ
  20. "Angie's List reports first profitable year in company history". February 23, 2016.
  21. "Angie's List: Worth $9 Based On Expected Lifetime Member Value In 2015". Seekingalpha.com. October 26, 2013. Retrieved October 18, 2014.
  22. "Why Angie's List (ANGI) Could Be an Impressive Growth Stock". zacks.com. October 28, 2015. Archived from the original on December 22, 2015. Retrieved October 28, 2015.
  23. "This is why analysts are through the roof on ANGI Homeservices". MarketWatch. Retrieved August 28, 2019.
  24. "Angie's List will merge with HomeAdvisor after finally accepting IAC's acquisition offer". TechCrunch. Retrieved August 28, 2019.
  25. "Merger Proposal". ANGI Homeservices. Retrieved August 28, 2019.
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