Swisscom’s Entry into the On-Demand Home Service Economy: Partner or Acquire? Rent-a-Geek from Mila (B) – Managing a Start-Up Post-Acquisition

Case Solution

Laura Londono Giraldo, Marie-Ann Betschinger, Russell Fralich
HEC Montreal Centre for Case Studies ()

Christian (Chris) Viatte, Head of Service Innovation and Experience at Swisscom, the market leader in the Swiss telecommunications industry, walked into his office and dropped into his chair. Some of Swisscom’s top executives will hold a meeting soon to discuss the company’s partnership with Mila, an on-demand home services startup market. Under Chris’s leadership, Swisscom and Mila created Swisscom Friends, a service solution that connects Swisscom customers with verified and technically experienced people in their neighborhood who could help them with small service requests. By 2015, Mila and Swisscom had created a multitude of services of more than 1,500 active “friends” in Switzerland, and Swisscom now had to think about the future of the purely contractual relationship. Should Swisscom take over Mila in whole or in part? Should you withdraw from the association and offer the service on your own? Should I be more involved in Mila’s management? This two-part case deals with the development and management of the partnership between Swisscom and Mila, in particular how Mila has gone from being a contractual partner to a wholly owned subsidiary of Swisscom.

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