Last month, Hailo shocked everyone by revealing its plans to pull out of the North American market. Unwilling to compete with the likes of Uber and Lyft, the company said it was going to focus on other markets where it already had a presence, including Europe and Asia.
Though Hailo Toronto was quick to reassure users that it would remain operational, it soon became apparent that this was not the case, and the company today confirmed that it would officially shut down its Toronto branch this coming Sunday, November 9th. In an email sent to Toronto users, Hailo warned that come 3am on Sunday, the service would no longer be functional.
“Yes it’s true, you read right. We’re leaving Toronto. Unfortunately, Hailo’s ideal to deliver on hassle-free for both drivers and city-dwellers required factors that were very much outside of our control. You can read more about it here,” the company said, linking to a CTV article in which co-chief executive and president Tom Barr explains the reasoning for the company’s decision.
“In the next phase of our growth, we have decided to put all of our energy and resources into these areas,” Barr is quoted as telling the AFP. “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.”
Hailo has yet to confirm the shutdown date for its Montreal operation.
