Segue Startup Case Study: A Construction Sharing Marketplace

Segue

Segue was a construction labor-sharing marketplace that connected contractors with skilled workers from other contractors. Founded in 2023 and based in Fort Worth, Texas, Segue aimed to address labor shortages and project delays by enabling construction companies to share their workforce during periods of fluctuating demand. However, the company ceased operations in 2024 due to challenges in achieving sufficient market adoption and securing the necessary funding to scale its platform in a highly competitive construction technology sector.

Founding Year: 2023

Headquarters: Fort Worth, Texas, United States

Industry: Construction

Status: Closed

Business Model

B2B, Two-sided, Product & Service

• Clients: Construction contractors of varying sizes who experience fluctuations in their labor needs or have skilled workers with potential downtime between projects.
• Suppliers: Construction contractors with available employees to share with other contractors.

It’s Like: Airbnb but for Construction Workers

Segue aimed to create a platform similar to how Airbnb connects travelers with accommodation providers, but instead of rooms or houses, Segue facilitated the sharing of skilled construction workers between contractors.

• Similarities: Both platforms operate as two-sided marketplaces, connecting those with an asset (rooms/workers) to those seeking that asset. They facilitate temporary access, handle payments, and rely on user reviews and ratings to build trust.
• Differences: Airbnb caters to a broad audience seeking travel accommodation, while Segue was focused specifically on the construction industry and its unique labor dynamics. Segue also needed to address the complexities of labor laws, worker qualifications, and industry-specific safety regulations, which are not factors for Airbnb.

Cyclical Labor Demand, Skilled Labor Shortage, and Inefficient Workforce Management

• Cyclical Labor Demand: Construction companies often face periods of downtime between projects, leading to the need to hire and fire workers frequently, resulting in inefficiencies and potential loss of skilled labor.
• Skilled Labor Shortage: The construction industry, particularly in the US, experiences a significant shortage of qualified workers, making it challenging for contractors to find reliable and experienced personnel for their projects.
• Inefficient Workforce Management: Traditional hiring practices in construction often involve manual processes, leading to delays and increased costs for contractors.

Employee Sharing & Streamlined Hiring

• Employee Sharing: Segue’s platform enabled construction contractors to connect and share their employees during periods of downtime or varying project needs. This provided a solution for contractors to optimize their workforce, reduce turnover, and potentially access a wider pool of skilled labor.
• Streamlined Hiring Process: The platform offered features to simplify the process of posting available workers, searching for specific skills, and managing temporary work arrangements, potentially reducing administrative burden for contractors.

Founding Story

• When and How Founded: Segue was founded in 2023 by Shaquille Gould in Dallas, Texas.
• Founder’s Problem Experience: While serving as General Manager at Workrise, a workforce management solutions company for skilled trades, Gould experienced firsthand the challenges of labor shortages, high turnover, and the cyclical nature of project-based employment in the construction industry.
• Founder’s Background: Gould’s professional background includes roles at Google and PepsiCo, founding ventures such as Tagd and SalesPlan, and serving as an investor at Quake Capital. This diverse experience provided him with business acumen, insights into the tech industry, and an understanding of venture capital expectations.
• Reason for Starting Segue: Recognizing the need for a more adaptable and efficient workforce solution in construction, Gould founded Segue to create an employee-sharing marketplace aimed at reducing turnover and improving retention by connecting construction contractors to share employees.
• Challenges: Despite early traction, Segue faced challenges in achieving widespread adoption within the construction industry. The founder later acknowledged that the concept might have been “5-10 years too early” for the market, indicating difficulties in market readiness and adoption.
• Innovation and Technology: Segue utilized technology to create an online marketplace platform that enabled contractors to connect and share employees.

Key Growth Milestones

• November 2022: Segue raised an undisclosed amount in a seed round from investors, including Antler and Hustle Fund.
• May 2024: Despite achieving early traction, Segue ceased operations due to the founder’s assessment of a limited “venture scale path.”

Market & Competition

Target Market

• Geography: United States (Specifically Texas, as the company was headquartered in Fort Worth)
• Industry: Construction
• Customer Segment: Construction contractors of varying sizes who experience fluctuations in their labor needs or have skilled workers with potential downtime between projects.
• Market Size: The U.S. construction market was valued at approximately $1.77 trillion in 2023 and is projected to reach $2.52 trillion by 2030, reflecting a compound annual growth rate (CAGR) of 4.0%.
• Market Need: The construction industry faces a significant labor shortage. In 2025, the industry is projected to require an additional 439,000 workers to meet demand. This shortage is driven by factors such as an aging workforce, declining interest among younger workers, and post-pandemic economic shifts.
• Growth: The demand for construction workers is steadily increasing. The industry employs approximately 8.2 million workers as of 2024, with employment levels at an all-time high.

Competitor Landscape

Segue operated in a competitive market with several key players in the construction technology and labor marketplace sectors.

• ISN Software Corporation: Online platform to manage contractors and suppliers.
• Trade Hounds: Online marketplace to hire construction professionals.
• ToolBelt: SaaS platform to connect construction tradespeople.
• Sweeten: Online platform for home improvement services.
• Wreno: Online platform for hiring construction professionals.
• Idyllo: Personalized home improvement marketplace.
• HeyPros: Online marketplace for the flooring industry.
• New Avenue: Online marketplace and collaboration platform for community builders.
• Contractors Work: App-based marketplace for construction workers.
• iBUILD: Online marketplace for construction professionals.

Marketing & Sales

Main Positioning Values: Time and providing a flexible, technology-driven solution to address labor inefficiencies in the construction industry.

Website & Socials

• The website joinsegue.com is inaccessible and not functional.

Media Coverage

Shaquille Gould’s Personal Website: The founder discussed Segue’s journey, highlighting early traction, a strategic pivot, and the decision to cease operations due to scalability concerns.

Marketing Strategies

• Target Audience: Segue’s primary target audience was construction contractors. The platform aimed to address the specific workforce management challenges faced by this industry, such as labor shortages, employee turnover, and the cyclical nature of construction projects.
• Customer Acquisition: As an online B2B marketplace, they utilized a combination of digital marketing tactics, including:
  • Search Engine Optimization (SEO): Optimizing their website (joinsegue.com) to rank well in search engine results for relevant keywords related to construction labor, employee sharing, and contractor workforce management.
  • Social Media Marketing: Segue had a Facebook page (now deleted) and a LinkedIn page to connect with and engage potential customers within the construction industry.
  • Direct Outreach: Reaching out directly to construction companies through email campaigns, cold calling, or attending industry events to introduce their platform and its benefits.
  • Content Marketing: Created blog posts that could help contractors address their workforce challenges.
• Supplier Acquisition: Segue’s “suppliers” were the construction contractors who listed their available employees on the platform. Similar acquisition tactics to those used for customers were likely employed, focusing on the benefits of joining Segue as a way to manage employee downtime and potentially generate additional revenue by lending out skilled workers during periods of low project activity.

Product & Innovation

• Niche Focus on Construction: Segue’s key innovation was its specific focus on the construction industry, addressing the unique labor challenges faced by contractors.
• Employee Sharing Model: The platform’s core innovation was the introduction of an employee-sharing model tailored for construction, enabling contractors to temporarily exchange skilled workers based on project needs. This approach aimed to create a more flexible and efficient labor market within the industry.
• Integration with Existing Workforce: Unlike platforms that rely on freelancers or gig workers, Segue’s model leveraged the existing workforce of construction companies, potentially providing a higher level of trust and reliability for contractors seeking skilled labor.

Financials & Metrics

Revenue Sources

As a two-sided marketplace, potential revenue sources could include:

• Transaction Fees: Charging a fee for each successful employee-sharing arrangement facilitated through its platform. This could have been a percentage of the worker’s wages or a flat fee per transaction.
• Subscription Fees: Contractors might have paid a recurring subscription fee to access the platform and its features, such as posting worker availability, searching for available workers, and utilizing scheduling and communication tools.

Structure

Leadership:

• Shaquille Gould: Founder and CEO

Closure Rationale

Challenges and Risks

• Limited “Venture Scale Path”: The founder identified the lack of a clear path to rapid and substantial growth as the primary reason for Segue’s closure.  This suggests challenges in achieving the scale and profitability expected by venture capital investors.
• Market Adoption: The concept of employee sharing between construction contractors might have faced resistance due to established industry practices, concerns about liability, or logistical complexities.
• Competition: Segue operated in a competitive landscape with various established and emerging platforms offering solutions for the construction and home improvement sectors.

Reason

Segue ceased operations in May 2024. The founder, Shaquille Gould, cited the primary reason for closure as the lack of a clear path to venture-scale growth.

Key Takeaways for Entrepreneurs

• Niche Down for Impact: Segue’s journey underscores the importance of targeting a specific niche. By focusing on the construction industry’s unique labor challenges, Segue aimed to provide a tailored solution. However, the company’s experience also highlights the risks associated with niche markets, especially when the target industry may not be ready for innovative solutions.
• Turn Problems into Partnerships: Identifying a common pain point—labor fluctuations—Segue sought to transform it into an opportunity for collaboration among contractors. This approach emphasizes the potential of creating platforms that facilitate resource sharing and mutual support within industries.
• Existing Resources, Reimagined: Rather than introducing a new workforce, Segue aimed to optimize existing labor resources through a sharing model. This strategy highlights the value of reimagining and maximizing current assets to address industry inefficiencies.
• Validate Quickly, Even with a “Big Idea”: Despite its ambitious vision, Segue prioritized early customer validation, securing pre-seed funding and testing its assumptions in the market. This approach reinforces the importance of iterative development and real-world feedback in refining a product or service.
• Think Beyond the “Gig” Model: While the gig economy has gained prominence, Segue’s model focused on enhancing existing employment structures within the construction industry. This perspective suggests that innovation can also stem from improving traditional models rather than solely adopting gig-based approaches.
• Look for “Wave Industries”: Segue targeted the construction sector, characterized by cyclical demand and labor needs. Identifying industries with predictable fluctuations can present unique opportunities for solutions that address these inherent patterns.
• Understand Market Readiness: A critical lesson from Segue’s experience is the importance of assessing market readiness. Even with a well-conceived solution, success depends on the industry’s willingness and ability to adopt new models. Entrepreneurs should evaluate the timing and receptiveness of their target markets to ensure alignment with their offerings.
• Recognize When to Pivot or Pause: Segue’s decision to cease operations, despite early traction, reflects the necessity of recognizing when a business model may not be scalable or sustainable in its current form. Being attuned to such signals allows entrepreneurs to make informed decisions about pivoting, pausing, or redirecting their efforts.