

iCracked (YC W12) Is Blowing Up With A New “Uber” For iPhone Repairs Service  - aj_icracked
http://techcrunch.com/2013/02/23/icracked/

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akg_67
Is this model scalable and profitable? I have serious doubts. I see too many
similarities to onsite pc repair services of the past like nerd on site, etc.
This is at best a lifestyle business opportunity.

About 10 years ago, I operated a business of onsite pc service for small
businesses. The largest cost was unbillable time spent on traveling from one
customer to the next or sitting idle.

The article mentions tech, on contract, making $70,000-100,000 (seriously
doubt these numbers from my own experience). Generously assuming each repair
generates $100 in revenue, a tech has to fix 700-1,000 devices per year to
make the reported number. With 350 tech on contract and iCracked eying "eight
figure" (~$10 million) in revenue of which 50% from repair. At $5 million
dollar in repair revenue, each tech is only generating about $14,000 in
revenue.

Assuming tech works 8 hours a day 5 days a week, that means repair at least 3
devices a day. It is unlikely any organization can generate 3 calls every day
for each tech within a short area.

IMO, this business is a dud.

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SenatorSquires
Just to comment on your comparison to PC onsite service company... I think if
they really market this thing everywhere as 1 trendy new semi-immediate,
reliable iphone repair, it could do pretty well vs. the many small onsite pc
repair businesses. From my own experience, people are consistently posting
pictures of smashed IPhone screens on facebook. (and i've even driven over my
own iphone myself, don't ask). I think it's a lot more common for a typical
16-30 yr old smashing their Iphone, wanting to get it fixed immediately vs.
their computer not working for who knows what reason being much more
serious/complex issue.

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rdl
I wish you'd expand into third-party onsite tech service for other products.
i.e. if I were deploying hundreds of devices in the SFBA, if I could pay your
techs $x to take a y hour course online (or in a lab) to get qualified to work
on a new item, then pay them per onsite service dispatch.

Dell, Lenovo, Cisco, etc. do this for really high end products or large
contracts. Generally it's more cost-effective to RMA items from small
customers, but it would be cool to have the option of selling onsite service.

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rdl
Wow, awesome. (I've never broken a phone or tablet, only a Kindle and an old
iPod water damaged, but I can see how a $200-800 device you carry around could
be at risk of damage.)

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alexkcd
I've dropped all iPhones I've ever owned. Never shattered glass yet, but it's
only a matter of time.

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rdl
I've had really good luck with the Magpul cases (which match my magazines).
They finally came out with one for the iPhone 5.

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bcj
Off Topic, but I don't really understand why TechCrunch would choose to refer
to iCracked as the "Uber" for iPhone repairs when the AAA analogy is
significantly better.

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jonathanjaeger
It's perfectly understandable. AAA is an old company, and Uber is the hot new
and often controversial tech company. Now whether you agree with how they
worded it.. that's a different story.

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ivzar
$XX million in annual revenue? People need to buy cases...

But power to iCracked, those are some seriously absurd numbers.

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ashrust
Nice job iCracked team. Great service that everyone needs.

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Evbn
Well, Android users don't need iPhone repair.

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31reasons
They just need Android Repair..hmm wonder how long will it take for iCracked
to move to that market? Android's device fragmentation makes it harder.

