In the News: Taxi Cab App Karhoo Announces Shut Down
Karhoo, a start-up based in London was said to be a game-changer as it started growing on commuters. It’s an app that’s like the Agoda or Trivago of taxi cabs comparing rates from different transportation service providers including: mini cabs, black cabs and executive cars.
The app allowed commuters to connect with big names and small names alike in taxis alike from Com Cab and Addison Lee (making up 8000 Black Cabs in London) to Mornington Cars based on in Camden.
The app was well received by commuters and London and soon was able to open up its headquarters in New York too and reported that within its first 12 weeks, it already reached 3000 downloads.
Just October this year, their spokesman shared how the company had already acquired millions of dollars to fund for their operations and were looking to exceed the $300M mark and even more so to reach $1B over the next 18months. This was clarified later on by the company’s founder Daniel Ishag in an interview with Financial Times where he said they never got to raise $250M
When the Game-Changer Lost in the Playing Field
It was well-received by commuters in London and soon was able to open up its headquarters in New York too. But news of excessive free rides from the app spread and has been reported to be a cause of business loss for the company. One employee who asked to be kept anonymous, shared that there were too many promo codes released which lead them to having to manage fraud. “They were usually $40 (£32) promo codes per ride, so people would take a $39 (£31) dollar ride over a $28 (£23), for example.”
Though other rumors and cases pointed out were asked if these were the cause of the company’s closure. One question raised was how the company seemed to be set-up in extravagance as they leased prime locations in London and then another in Park Avenue, around Chelsea in New York City. While an additional 3 apartments were rented in Manhattan for the company’s senior management to use personally. But Mr.Ishag insisted that the company had allocated and managed the company’s budget just the same as any start-up would as they were hiring and opening five locations across three continents.
And another angle asked is that of proper funding as there were rumors of promised funding not delivered by investors. However, this one is unproven and no one has confirmed such allegation.
So there is still debate as to the cause of the company’s down fall.
Money Invested in the Right Place – SGMaxi
Meanwhile, we at SGMaxi understand and invest on what we find is valuable, not just for the growth of our business but the comfort and safety of our customers. Extravagance is more seen in the level of service we provide, which despite the quality of is quite affordable and reasonably priced. Our Maxicabs, minibuses and limousine services are available and can be conveniently booked online with the best prices you can have for you transportation needs.
We invest in the training of our staff and drivers and in ensuring that our vehicles are kept to highest standards in comfort and safety. So when you book with SGMaxi you know you’re putting the money in the right place, and that it will be money and time well-spent.