With the advent of smart mobile devices, even transportation services have seen a revolution – the appearance of car-sharing services that rival the regular taxi and limo providers.
One of the most famous such companies is Uber Technologies, a San-Francisco car-sharing provider that is equally known for its surprising IPO valuation and protests and bans across the world.
Now, Hailo Network Ltd., a taxi application that competes with Uber, has announced it decided to stop offering its services in North America. The move also sees co-Chief Executive Officer Jay Bregman – one of Hailo’s six co-founders – leaving the company.
According to Tom Barr, CEO and president of London-based Hailo, the costs to run the taxi service in North America were “astronomical” and led to “profitability for any one player almost impossible.”
The company has said it would continue to focus on its remaining regions, such as the businesses in Europe and Asia, also introducing new products to increase appeal, such as an upcoming concierge service. Hailo’s North American markets so far included New York, Toronto, Chicago, Boston, Washington, Montreal and Atlanta. The company is also famous for having Sir Richard Branson as one of the shareholders.