Upwork

Upwork is an online labor marketplace that assists in engaging freelancers and businesses in discovering direct labor arrangements for both short and long-term projects. Upwork’s roots date back to 1998 and 2003 when online talent marketplaces Elance and oDesk were founded. In December 2013, Elance and oDesk announced its merger with a combined freelancer base of over 8 million (5 million from oDesk and 3 million from Elance). Subsequent to the merger, Elance-oDesk continued to report losses and required a bailout package of USD 30 million from Benchmark Capital in November 2014. The company was rebranded as Upwork in May 2015. 

Unlike Fiverr, Upwork encourages freelancers to develop a profile focused on specific expertise, helping them build a niche reputation. Fiverr, on the other hand, allows freelancers to offer a wide range of services through individual gigs, enabling them to market multiple skill sets simultaneously. In February 2023 Upwork expanded its offerings to include full-time hiring for businesses with features such as finding, vetting, hiring, onboarding, and paying professionals for full-time work arrangements.  Additionally, in December 2023, Upwork launched Chat Pro, a GPT-4-powered app in beta, to enhance work efficiency. In October 2024, Upwork introduced  Uma, an AI assistant, the Business Plus plan for Expert-Vetted talent, Featured Jobs, and Boosted Profiles. At the time, the company also announced a 21% workforce reduction aiming to save USD 60 million annually.

Upwork also offers several solutions to streamline hiring: Talent Scout, connecting clients with pre-vetted freelancers; the Work Marketplace and Project Catalog for easy hiring; and the Virtual Talent Bench, which helps businesses build and maintain a network of freelancers for ongoing collaboration.

The company generates revenue via a 10% project fee charged from clients, and freelancer subscriptions priced at USD 20 per month.

In October 2018, Upwork listed on the NASDAQ to raise approximately USD 187 million. In FY2023, Upwork generated USD 689 million in revenue (up 11% YoY). The company guided FY2024 revenue between USD 760 million to USD 780 million, representing 11.7% YoY growth at the midpoint. Diluted earnings per share (EPS) stood at USD 0.13 in FY2023, compared to a loss per share of USD 0.69 in FY2022.

Key customers and partnerships 

The company recorded 868,000 active clients as of August 2024, with notable clients including Microsoft, Airbnb and NASDAQ, among others.

In August 2024, Upwork partnered with Beeline to integrate its talent pool into Beeline’s vendor management system (VMS), offering access to over 10,000 professionals across 125+ categories. Previously, in January 2022, the company partnered with Catch to offer freelancers access to personal payroll and healthcare benefits.