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Find out why AUTOnCAB had to call off their services..

Not Just Another Shut Down!

About AUTOnCAB

Recently, Gurgaon-based autorickshaw hailing app AUTOnCAB had to wave a good bye in the market. Launched in March 2014 by Co-founder and CEO Vinti Doshi, AUTOnCAB was operated by New Delhi-based NGA Technologies Pvt. Ltd. and its presence was felt in six cities of India- Noida, Ghaziabad, Gurgaon, Kota, Chandigarh and Jaipur. The app was available on both, Android and iOS platforms.

The reason for shut down: Reports by Tech Circle

AUTOnCAB, who aimed to facilitate one million rides by expanding in 200 cities by the end of 2016, was not able to withstand the competition given by well-funded rivals Uber, Jugnoo and Ola. Hence, the startup started from laying off its 40 employees. Lately, Uber and Ola were offering a lot of discounts, incentives and deals to survive in this competitive market of cab aggregators. AUTOnCAB were not in a position to burn cash unnecessarily. Moreover, it was heard that the startup was in talks to conduct a fresh funding round. However, it failed to crack the deal. In the past, AUTOnCAB had raised $1 Million in a funding round from US-based Maan Ventures and an undisclosed private investor.

Definitely, India is a growing market for such tech-driven startups. But, some like Uber and Ola are touching the sky; while AUTOnCAB breaks down.

What do you think about startup shut down? Kindly comment below.

Takeaways:

  • AUTOnCAB, who aimed to facilitate one million rides by expanding in 200 cities by the end of 2016, was not able to withstand the competition given by well-funded rivals Uber, Jugnoo and Ola.
  • Hence, the startup started from laying off its 40 employees.
  • AUTOnCAB were not in a position to burn cash unnecessarily.

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Startup-Buzz Team

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