Tuesday, October 14, 2014

Hailo Pulls Out Of North America. CEO Says Impossible To Make a Profit There. Co Founder Jay Bregman Quits.


 Hailo is hitching a ride out of North America, reported by Financial Times.

The company has found it "impossible" to become profitable in the United States as Uber and Lyft wage a cutthroat war to become the premier ride-sharing service. 

Hailo doesn't have its own drivers; instead, its app matches passengers with taxi drivers or licensed black car drivers with a couple quick taps. 

The company first launched operations in the US in 2012 and entered the battleground of New York City last year. But now it's bowing out to focus business squarely on Europe, where Hailo is based. 

"It’s not that we aren’t growing there," said chief executive Tom Barr of North America, in an interview with the Financial Times. "But the profitability of the market and the type of environment that other taxi-app companies are setting up, both on the driver and passenger side, ceased to make sense to us."

Around 20 employees will be out of a job when Hailo shuts down service in Boston, Chicago, Montreal, Toronto, and Washington DC. 

Hailo says it's got 1.4 million registered passengers, but at least in the US, the Uber / Lyft battle is keeping sustainable profits and growth out of reach. 

Barr is now Hailo's only boss; Jay Bregman, a co-founder and (until now) co-CEO, is leaving the company with today's news.

   Hailo, Wastington DC. RIP



1 comment:

Crusshed said...

Well I for one won't be crying, they had a good idea and somehow managed to have a 'Ratner Moment'.

If they had played it cool, they could have been the only Cab App in London, eventually swallowed up the circuits and been truly big time.

Good case study of how to snatch defeat from the jaws of victory!