ZenPayroll changed its name to Gusto. The company is also branching out from just payroll services and is now looking to provide benefits such as health insurance and workers’ compensation. This puts ZenPayroll in direct competition with one of its earliest partners, Zenefits.
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We’ve heard that cloud HR benefits company Zenefits plans to roll out a payroll service similar to the startup formerly known as ZenPayroll. In a weird twist, these cloud-based startups, once partners in offering each others services are now both planning to offer their own payroll and benefits services in one platform – in other words, Zenefits and Gusto are now competing for business. “The size of this market and the speed of the disruption are likely to attract many new entrants.” Zenefits spokesperson Kenneth Baer told TechCrunch when asked about the competition. “We’re happy we started on this journey a little more than two-and-a-half years ago, and as the market leader and pioneer in the category, believe that no one can match our product and how easily and automatically Zenefits eliminates the administrative work behind running a small business.”
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