When it comes to valued SweepStars, we pay between 80% and 96% of the total booking fee to SweepStars based on their experience (while SweepStars start on 65% of the booking fee during their first 2 to 3 months trial period to recoup costs), in line with other on-demand platforms. The SweepStar is responsible for paying for their transport.
- The per hour rate for SweepStars is between 80% and 96%, while during their first 2 to 3 month trial on the platform they start at 65% of the hourly rate.
- Average booking time is 7.1 hours, or about R210 per day. This equates to around R4k a month.
- The earning is a flat rate and the total amount is related to hours worked, however, we limit the type of work being done to basic housework.
- The vast majority of SweepStars work for the platform between 3 to 5 days a week, with 30% of SweepStars working in other homes outside of the platform (we of course fully support this, and many of this group initially joined the platform due to underemployment).
We introduced tipping so that we could allow clients who can afford to pay their SweepStars more, to do so. Tips are paid in full to SweepStars, with SweepSouth taking no margin and paying the the bank processing fee of R3 on average per tip, which enables the SweepStar to receive the full tip. We also have clients who prefer to tip in cash.
What is the hourly rate paid to SweepStars?
For the first 3 months on the platform SweepStars receive 65% of the hourly rate. At this rate and with the average booking size of 7.1 hours, this equates to +R3,500 in the initial period, and roughly +R4,200 per month thereafter. The initial rate covers the additional support required in the first few months, paid background and reference checks and materials used and provided during onboarding.
How does this compare to minimum wage and national averages?
- According to the Department of Labour and as of December 2017, minimum rates for domestic workers are R1,641 in rural areas and up to R2,545 in urban areas for 2018. According to a BusinessTech study with over 6,000 respondents (https://businesstech.co.za/news/finance/227253/how-much-south-africans-are-paying-domestic-workers-in-2018/), the majority of South Africans who employ a domestic worker pay up to R3,500 per month.
How does SweepSouth’s business model work?
- SweepSouth retains 4% - 20% of the total booking fee to cover the costs of running the company. This includes the costs of insurance that covers all bookings, vetting and other onboarding, some transport costs, on-the-job support for SweepStars (in case of any emergencies), and business running costs like internal office staff, marketing, transaction and banking fees, software and technology, and telecoms and admin.
What influences domestic worker pay in South Africa?
- Domestic worker pay in South Africa is influenced by a number of factors, including the market’s ability to pay, the level of skill of the work, the supply of workers in the industry vs demand, and regulations like minimum wage. In domestic work, with the market being households, employers are individuals who pay for another person’s salary out of their own. The industry currently has over a million registered workers, and unfortunately, data has shown that in households under economic strain, domestic workers are amongst the first casualties.
What if I can pay more?
- We introduced tipping so that we could allow clients who can afford to pay their SweepStars more, to do so. Tips are paid in full to SweepStars, with SweepSouth taking no margin and paying the the bank processing fee of R3 on average per tip, which enables the SweepStar to receive the full tip. We also have clients who prefer to tip in cash. As part of our efforts to improve, we are considering a feature allowing customers to pay more over and above the booking amount (not linked to the concept of “tipping”), and this amount will also go to SweepStars without any of it going towards the company.