SINGAPORE — Just two weeks ago, its team met taxi operator ComfortDelGro to discuss the launch of its service here. But on Tuesday (Nov 8), the British taxi-hailing start-up, Karhoo, announced abruptly that it was shutting down, citing financial woes.
In a press statement, the firm said: “It is with much regret that we have to announce that Karhoo has had to close its service and is now looking at the next steps for the business.”
Many of its employees in its London, New York, Singapore and Tel Aviv offices had worked without pay for the last six weeks in an effort to keep the business afloat, it added.
“Unfortunately, by the time the new management team took control last week, it was clear that the financial situation was pretty dire, and Karhoo was not able to find a backer,” said the firm, which was founded in London last year.
According to a Financial Times report in October last year, Karhoo had raised US$250 million (S$347.55 million) since its launch, with plans to raise another US$1 billion this year.
The start-up last year inked partnerships with taxi firms ComfortDelGro and Prime Taxi in advance of its projected launch here early this year, which never materialised.
Then, just last month, Prime Taxi, Singapore’s smallest taxi operator, announced that it had entered an exclusive partnership with ride-hailing app Grab, paving the way for its 1,000 drivers to accept bookings via the platform.
Prime Taxi deputy general manager Neo Chee Yong declined to comment on its previous arrangements with Karhoo.
He would only say: “It is regretful that Karhoo was unable to realise its potential. We wish the local team well in their future endeavours.”
Meanwhile, Karhoo’s abrupt closure came “as a surprise” to ComfortDelGro, its group corporate communications officer Tammy Tan told TODAY. Only a fortnight ago, the taxi operator had met the Karhoo team to discuss the launch of its Singapore service.
“While it is disappointing that this is no longer on the cards, it does not detract us from (our) commitment to further enhancing our booking app and system,” Ms Tan added.
In September, Karhoo had revealed plans to enter the private-hire car industry here in a matter of months.
In an interview with The Straits Times, its strategy director Will Harris had said it was working with private-hire vehicle operators — from rental-car to limousine firms — to expand its network to include 2,000 private-hire cars.
Karhoo did not respond to TODAY’s queries on what would become of its previous agreements with ComfortDelGro and Prime Taxi, or its other plans here.
The Land Transport Authority (LTA) had, in February, given Karhoo the go-ahead to operate a third-party taxi-booking service. But an LTA spokesperson said yesterday that the authority had not received any notification from Karhoo “that it would not operate a third-party taxi booking service”.
