Homejoy, the at-home cleaning service that’s one of a new breed of startups serving as a broker of on-demand services, is shutting down, as companies in that category face legal challenges aimed at forcing them to classify freelancers as employees.

In an announcement on Homejoy’s site on Friday, CEO and co-founder Adora Cheung cited “unresolved challenges in the home services space.”

She did not specifically call out the worker classification issue. But a report in Re/code says the company was having difficulties raising additional funding amidst the concerns. Homejoy did not immediately respond to a request for comment.

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