EDGE
Book a demo

Pet Care Tech

Pet ownership is at an all time high in the United States and the pet care economy is booming.

Overview

On-demand pet care tech enhances owner-pet relationships

Pets are increasingly considered as irreplaceable family members, especially among millennials who are willing to spend more on improving their pet’s health and quality of life. Even if a person is restrained from owning a pet due to various reasons (such as financial, time, and other constraints), on-demand pet care tech can fulfill the desire to have the company of a pet only in their leisure time, all while earning an income. As a result, on-demand pet care services have emerged to digitally connect pet owners to a network of pet care service providers such as 1) mobile-based platforms that connect pet owners with dog walkers, pet boarding, pet sitting, etc., and 2) digital veterinary platforms that provide on-demand video consultation services.

What's driving this industry?
Market Sizing

The US pet care tech market could reach USD 800 million - USD 2.1 billion by 2025

Conservative case

USD 0.8 Bn

Low Penetration
Base case

USD 1 Bn

Average Penetration
Expansion case

USD 2.1 Bn

High Penetration
USD millions05001,0001,5002,0002,5002019202020212022202320242025
View details

COVID-19 IMPACT

  • Demand for on-demand pet care, such as dog walking and pet sitting, declined due to lockdowns and social distancing rules.

  • Rover, one of the largest players in the industry, laid off 41% of its workforce in March 2020 however, revenue increased during the latter part of the year amidst increased pet adoption during the pandemic

  • Demand for veterinary telehealth services have spiked, with several operators ( Fuzzy Vet Health, Bond Vet, FirstVet, and AirVet), reporting a substantial revenue growth

Market Mapping

The on-demand pet care market comprises pet care service companies and veterinary telehealth services that digitally connect pet owners with pet service providers. Wag and Rover are the leading startups in the on-demand pet care services segment, and the companies do not face competition from established traditional players. Wag also remains a dominant player in the on-demand veterinary telehealth services segment along with WhiskerDocs; however, startups in this segment face competition from a few hospitals and pet retailers. Most companies in the industry are at the seed stage due to the nascent nature of the industry.

Incumbents
Growth
Early
Seed
Pre-Seed
On-demand pet care services
?
On-demand veterinary telehealth services
?
BorrowMyDoggy
BorrowMyDoggy
Wag
Rover
Petabyte Technology
Babelbark
Trusted Housesitters
BorrowMyDoggy
Groomit for Pets
Swifto
Pawshake
Skiptown
GuDog
Digitail
We Nuzzle™
Barkly Pets
Urban Leash
Petmasters
Banfield Pet Hospitals
VCA Animal Hospitals
PetCo
Medici
Chewy
BluePearl Pet Hospital
Pets at Home
Bond Vet
EPIQ MD (EPIQ Paws)
Wag
Fuzzy
Felmo
WhiskerDocs
VetNOW
GuardianVets
FirstVet
Petabyte Technology
AirVet
Babelbark
TeleVet
PawSquad
Petriage
Hello Ralphie
Smart.Vet
BetterVet
Sniffy Pet
InstaVet
Modern Animal
Small Door
Pawp
Vetster
Dutch
Digitail
KwikVet
Ask.Vet
Vetsie
TeleTails
Anipanion
Vetter Pet Care
Pawzy
Petmasters

The Disruptors

The digital pet care market consists of several disruptors that operate in on-demand pet care services and on-demand veterinary telehealth services, the largest being Wag and Rover. Given the success of these two companies (with more than USD 300 million in funds raised, respectively) many startups have emerged in the market offering various services over the past couple of years. While few companies have remained in the market, many have succeeded by capitalizing on the concept of a gig economy. Apart from a few leading players, funding of other startups has typically been less than USD 50 million, and they have yet to see growth in the on-demand pet care market space.

On-demand pet care services

?

Disruptors

?
Funding in USD Millions
Rover
Public - Market cap USD 1.2 bn
Wag
361
Petabyte Technology
23
Trusted Housesitters
10
Watchlist
?
Babelbark
Digitail
BorrowMyDoggy
Groomit for Pets
Swifto
Pawshake
Skiptown
We Nuzzle™
Barkly Pets
GuDog
Petmasters
Urban Leash

On-demand veterinary telehealth services

?

Disruptors

?
Funding in USD Millions
Wag
361
FirstVet
96
Modern Animal
89
Fuzzy
81
Petabyte Technology
23
Felmo
18
AirVet
14
Dutch
5
Hello Ralphie
1
Vetsie
0
Smart.Vet
Unknown
WhiskerDocs
Unknown
Anipanion
Unknown
VetNOW
Unknown
GuardianVets
Unknown
Watchlist
?
Small Door
Pawp
Babelbark
Vetster
TeleVet
PawSquad
Digitail
Petriage
KwikVet
Ask.Vet
Petmasters
TeleTails
Vetter Pet Care
BetterVet
Pawzy
Sniffy Pet
InstaVet

Rover

Rover, is a pet-care service provider which operates through online and mobile platforms connecting pet-owners with pet-care service providers that offer pet boarding and sitting services, dog daycare, dog-walking, and drop-in visits. As of February 2021, the company reportedly served more than two million pet-owners and 500,000 service providers across North America and Europe. In Q2 2019, Rover recorded sales of nearly five times that of Wag’s with almost identical customer retention rates, which indicated Rover’s leading position.

In May 2018, Rover raised USD 155 million led by T. Rowe Price (a global asset management firm), marking its largest funding round. The funds were utilized for accelerating expansion into Europe, entering Latin American region and expanding into cat-care services (in April 2019). In line with its expansion strategies, Rover also acquired DogBuddy (a UK-based dog walking, boarding, and daycare company) in October 2018. With this acquisition, Rover marked its presence in the UK, France, Italy, Germany, and several other EU countries. In November 2020, the company entered into partnership with Walmart, where Walmart.com promotes Rover under Walmart Petcare.

In February 2021, Rover announced plans to become a public company by merging with Nebula Caravel Acquisition corp., a SPAC (Special Purpose Acquisition Company) sponsored by True Wind Capital. The transaction is expected to be completed during the first half of 2021 and the combined entity will be renamed as Rover Group and will trade in the Nasdaq under the ticker “ROVR”. The combined company is expected to have a market capitalisation of approximately USD 1.63 billion and the transaction will provide USD 325 million in fresh capital to Rover, which is to be used to fund market expansion and product development.

Rover’s revenues dropped 49% YoY to USD 48 million in 2020 amid the pandemic, despite a growth of 35% YoY to USD 95 million in 2019. The pandemic also led to a drop in bookings during 2020, to 2.4 million from 4.2 million in 2019, resulting in a decline in gross booking value to USD 236 million in 2020 from USD 436 million in 2019. Rover laid off 41% of its staff (approximately 200 employees) in March 2020 due to the pandemic. The company expects bookings to recover in 2021 to 3.9 million with a subsequent increase to 8.1 million by 2022, driven by the gradual recovery in business activities and increased pet ownership.

Full-year 2021 revenue guidance was slightly revised in Q3 2021 to USD 106–110 million from the guidance of USD 102–110 million issued in August 2021, implying a YoY growth of 120.8%–129.2% from FY2020. Adjusted EBITDA guidance for 2021 was upgraded to USD 6–9 million in Q3 2021 (implied YoY growth of USD 30–33 million), compared to the previous guidance of break-even to slightly positive adjusted EBITDA.

Segment:
On-demand pet care services
Total funding:
USD 360.9 million
Competitors:
Wag
Disruptor Funding History

On-demand pet care services:

Rover
Wag
Petabyte Technology
Trusted Housesitters
Babelbark
Digitail
BorrowMyDoggy
Groomit for Pets
Swifto
Pawshake
Skiptown
We Nuzzle™
Barkly Pets
GuDog
Petmasters
Urban Leash

On-demand veterinary telehealth services:

Wag
FirstVet
Modern Animal
Fuzzy
Petabyte Technology
Felmo
AirVet
Dutch
Hello Ralphie
Vetsie
Small Door
Pawp
Babelbark
Vetster
TeleVet
PawSquad
Digitail
Petriage
KwikVet
Ask.Vet
Petmasters

The Incumbents

The on-demand pet care tech space has yet to attract major interest from established companies

The on-demand pet care tech space has yet to see major interest from traditional or established companies. However, in the on-demand veterinary services segment, a few hospitals have entered the market through partnerships with companies providing telemedicine services. Most of these services are, however, provided to existing clients as a premium service. Apart from veterinary hospitals, a pet retailer (PetCo) has also entered the market by acquiring a pet telehealth platform.

Acquisitions

In-house product development

Partnership

Investment

company-logo-0Banfield Pet Hospitals
check
company-logo-1VCA Animal Hospitals
check
company-logo-2PetCo
company-logo-3Medici
check
company-logo-4Chewy
check
company-logo-5BluePearl Pet Hospital
check
company-logo-6Pets at Home
company-logo-7MyTelemedicine
check
company-logo-8Bond Vet
check
company-logo-9EPIQ MD (EPIQ Paws)
check
Banfield Pet Hospitals

Banfield Pet Hospitals, established in 1955, is a provider of veterinary services with a network of more than 1,000 hospitals in over 40 states. The company provides a range of veterinary services such as vaccinations, parasite control, dental care, nutrition, etc., along with a twice-a-year physical examination. In June 2019, the Banfield Pet Hospitals network launched a telehealth service called Vet Chat, marking the first appearance of a major pet retailer in the on-demand veterinary service industry. The new service offers on-demand access to pet care advice for its Optimum Wellness Plan clients. Banfield’s telemedicine app was developed by Ask.Vet, a company that provides veterinary telemedicine services.

Notable Investors

No investor data is available

Funding data are powered by Crunchbase
arrow
menuarrow
Unlock company details, featured industry reports, and news updates.
Book a demo

By using this site, you agree to allow SPEEDA Edge and our partners to use cookies for analytics and personalization. Visit our privacy policy for more information about our data collection practices.