Gusto To Sell Its Service As API To External Platforms
The payroll and benefits management unicorn will be selling a part of its services to other companies via API
Image courtesy - Gusto
According to Tomer London, cofounder of Gusto, vertical SaaS companies are effectively offering a "business in a box" service today, making payroll to their own services, which is somewhat obvious as every company needs to pay for its workers. Also, for many companies, payroll is their largest expense. Alex Whelm writes about its move, its intent, and the takeaways in his article for Techcrunch.
The move to provide elements of its service through other firms' offerings could bolster Gusto's growth rate.
Now, even more, Gusto's services could become accessible via externally facing APIs over time.
Since Gusto was built using internal APIs to connect abstracted front and backends, third-party developers could eventually become accessible.
By embedding Gusto's payroll system, Squire improved user experience for their current and future customers. Furthermore, Gusto can generate more revenue from the same code it already uses to power it's original offering.
Gusto's move to open more of its service to other organizations while also offering its traditional service is another example of a rising trend that has been observed. More startups are moving to offer their services via an API as well as through a managed service.
What Zluri Thinks?
Gusto's trend of offering its payroll system as an API is definitely going to make many other companies follow in its footsteps. This is a win-win situation for Gusto, as APIs have become popular among businesses. Also, this will make Gusto prominent among smaller companies, who would want to their other offerings.
You can read the full article here.