Ride-hailing app Hailo is leaving North America as a result of a lack of business in the U.S. and competition with growing ride-sharing services Uber and Lyft.
Despite the lack of success in North America, Tom Barr, co-CEO of Hailo, said the company is experiencing a good amount of business in Europe and Asia, according to CNET.
Hailo, which was launched in 2010, doesn't cover as much ground as Uber and Lyft, as it offers its service in about 30 cities around the world. Uber is available in over 200 cities in 45 countries, and Lyft is available in over 60 cities in the U.S. Hailo says it carries over 20 million passengers so far. Uber and Lyft have also temporarily lowered prices by as much as 30 percent in cities where they both operate, and have been cutting fares to compete with traditional taxi drivers as well.
"In the next phase of our growth, we have decided to put all of our energy and resources into these areas," Barr said, referring to Europe and Asia. "We have therefore decided to end our operations in North America, where the astronomical marketing spend required to compete is making profitability for any one player almost impossible."
The move from North America comes two years after Hailo made its services available in the U.S., and one year after its app came to New York City, The Verge reported. By leaving Boston, Washington, D.C., Chicago, Toronto, and Montreal, 20 jobs will be cut.
Hailo's app is designed for taxi drivers, as the company doesn't have its own drivers. Passengers are matched with cab drivers and licensed black car drivers to make it easier to connect with rides.
New features have made their way to Hailo since its launch, including a concierge service for private hire drivers, according to CNET.
Barr said while it was a tough decision to end Hailo's service in the U.S., the company now has a chance to improve its offerings in other parts of the world.
"This has been a difficult decision to make, and we are very sorry for the impact on our colleagues who will leave the company and are doing everything we can to help them with their future careers," he said. "We and our investors are confident that our sharpened focus on Europe, Asia and services will help us have the biggest possible impact for our passengers and drivers."
