Rolfe Winkler on Zenefits fmr CEO Parker Conrad’s new competing startup Rippling adds IT to payroll

TL;DR

Rippling and Zenefits are competing startups in the HR industry, offering various services including employee data management and benefits administration.

Transcript

well it certainly takes aim at the same space HR yeah it's there's a whole bunch of startups that all want to be at the quote system of record and quote for employee data yep the idea if you can be the database that collects all of this information then you can potentially sell a whole bunch of services on top of it zenna fits zenefits niche was he... Read More

Key Insights

• 🥰 Rippling and Zenefits are competing startups aiming to become the leading HR system of record.
• 👶 Rippling distinguishes itself by offering laptops to new employees and providing software management and security measures.
• 😀 Regulators had a relatively small response to Zenefits' licensing issues, but the company faced consequences with the departure of its CEO and a settlement for millions of dollars.

Questions & Answers

Q: What services do Rippling and Zenefits specialize in?

Rippling focuses on health benefits administration, while Zenefits offers a wide range of HR services including onboarding, payroll, and benefits administration.

Q: How does Rippling provide endpoint security and software management?

Rippling provides laptops to new employees and ensures that the right software is installed and connected to the company's IP department, allowing for easy software management and security measures.

Q: Who are the investors in Rippling and Zenefits?

Rippling's seed investors include Y Combinator, Initialized, Allegis Capital, and Sam Altman. Zenefits also received investment from the Y Combinator crowd, Ron Conway, and Allegis Capital.

Q: What led to the departure of Parker Conrad, the former CEO of Zenefits?

Parker Conrad was ousted from Zenefits due to missing revenue targets and issues with licensing, as many of Zenefits' salespeople were not properly licensed to broker health insurance.

Summary & Key Takeaways

• Both Rippling and Zenefits aim to be the leading HR system of record by providing comprehensive employee data management services.

• Rippling focuses on health benefits administration, while Zenefits offers a wide range of HR services including onboarding and payroll.

• Rippling sets itself apart by offering laptops to new employees and providing endpoint security and software management.