Shohoz Truck Closes, Ride and Food Could Be Next
More than 50 employees have already been made redundant, sources say
Shohoz, one of the fastest growing startups in Bangladesh that intended to become a “super app,” has shut down its truck reservation services, and sources within the company say that Ride and Food could be next.
“Our board reviews our strategic vision with current and potential future verticals. As part of this review, we have shut down our truck reservation vertical as it is not essential and is not synergistic with our consumer verticals, ”Shohoz said in a statement.
Shohoz launched its truck reservation service in 2019.
Read also – Covid-19: What will happen to those whose only income is carpooling?
Meanwhile, more than 50 employees have been laid off from analytics, operations and other departments, according to sources within the start-up.
An employee of Shohoz, who was fired, said that “the layoffs were very sudden”.
October 31 will be the last working day for outgoing employees, said the employee wishing to remain anonymous.
Another employee, who also preferred not to be named, said Ride and Food could be shut down because these companies haven’t made much profit since Covid-19 hit the country.
But he added that Shohoz also brought in some new recruits just a few days ago.
Shohoz launched its carpooling service in March 2018 and food delivery at the end of October.
The general manager of Shohoz Maliha M Quadir did not answer questions, but Farhat Ahmed, the public relations manager of Shohoz, referred Dhaka Tribune to the official statement.
“Plus, blockages during covid have transformed the transit industry with disconnected drivers. To be in compliance with government regulations, we kept it away during Covid-19. We are now reassessing how and when to launch it, ”the statement read.
“Shohoz remains committed to staying focused on the convenience of the masses of Bangladesh. We will continue to innovate to solve fundamental problems where technology can provide convenience, ”he adds.
In May, Quadir told Dhaka Tribune that the carpooling industry had “totally collapsed”.
Founded in 2014, Shohoz quickly took the lead in the online ticketing market.
Read also – Carpool companies hit hard by Covid-19 again
Services offered by the platform included sharing motorcycles, booking trucks, and delivering food, groceries and medicine, as well as online doctor consultation and digital education.
Amid the pandemic, he launched Shohoz Health, a digital health service offering video consultations by health experts and on-demand drug delivery.
The start-up raised $ 15 million in funding from Singapore-based investment firm Golden Gate Ventures in September 2018.
Shohoz also announced that it secured an undisclosed funding amount that year in a round led by Vostok New Ventures, Partech Ventures, Heritas Venture Funds, Cypress Capital, Tekton Ventures, and participated by existing backer Golden Gate Ventures.