In the multi-billion home services sector, most local contractors have long managed jobs with paper invoices, phone calls, and Excel sheets. ServiceTitan saw an opportunity in this tech-neglected, fragmented market and created a cloud-based “operating system” for tradespeople.

The total volume of home service jobs processed through the ServiceTitan platform in 2024.

Here’s what you’ll learn: 

The U.S. home services industry generates roughly $600 billion annually. That should support modern operations.

It doesn't. The industry is wildly fragmented. No construction company holds more than 5% market share. Most shops are tiny. One owner, one landline, maybe a few trucks. Fragmentation prevents any standardization. Software vendors can't sell at scale when every contractor runs different processes.

The labor problem makes everything worse. Construction will need 439,000 workers in 2025 and 499,000 in 2026 just to meet demand. Nearly one in four construction workers is over 55. When you're short-staffed, paperwork competes with paid work. A missed invoice or lost phone message costs real money.

Phone calls drive most business. Sixty-eight percent of consumers prefer calling, but home services companies miss 27% of inbound calls. You can't reschedule a missed call from someone with a broken water heater. They're already dialing the next plumber.

ServiceTitan's founders watched this firsthand. Their parents ran contracting businesses from the kitchen table,typing invoices at night, managing shoeboxes of receipts, running three different desktop programs that didn't talk to each other. The software available couldn't scale past a one-truck operation.

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The founders, sons of contractors themselves, built software for the workflows they'd watched their parents struggle with. No generic enterprise tool. Cloud-based platform handling marketing, call booking, dispatch, GPS tracking, invoicing, and CRM in one system.

Mobile came first. Field techs needed to receive jobs, update status, photograph work, and process payments from a tablet at the job site. The software had to fit a plumber's workday, not the other way around.

Embedded payments became the second pillar. ServiceTitan processed credit cards, offered homeowner financing, and handled ACH transfers directly in the platform. The company takes a small fee on each transaction. By 2024, usage-based payments generated roughly 25% of revenue. When contractors close more jobs, ServiceTitan earns more automatic alignment.

Distribution required different channels for different customers. Small shops needed education first, so ServiceTitan invested in content showing what digital operations actually looked like. Sales teams walked family businesses through setup. For consolidators, ServiceTitan worked with private equity firms rolling up local contractors, becoming the standard system across franchise networks.

They also went straight to the source. ServiceTitan partnered with trade schools and programs like The Home Depot's Path to Pro. Future plumbers and HVAC techs learned the platform in training, solving two problems: contractors got workers who already knew the software, and ServiceTitan built early adoption with the next generation.