Reeves: $100B incumbents ADP and Paychex served under 30% of small businesses
Josh Reeves · From A Pivot To Building A $9.6 Billion Payroll Company · Y Combinator · Mar 18, 2025 · at 12:24
Josh Reeves, co-founder and CEO of Gusto, explains the market structure of the payroll industry when Gusto was starting out in 2012.
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“You had this amazing combination of, you know, some big incumbents like paychecks and ADP worth, you know, over a hundred billion dollars together at that point. So like clearly big, big incumbent market presence in terms of like economic value, but also an incredibly fragmented market like ADP and paychecks at that point were, you know, less than, you know, 20, 30% of the customers out there.”
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