Nigeria’s car-pooling startup, Hytch, has decided to change its business model, from providing ride-hailing services to a B2B logistics company.
Hytch has recently launched in May this year with the intention to provide users with a platform that enables them to share rides within the city. This model is meant to be faster, and more affordable for the users. Yet with such welcoming initiative and acceptance after launching, Hytch had to abort the mission and start on a new slate.
According to reports, and development on its LinkedIn about section, the company is deliberate altering its services to the public. Information gathered reveals that it is now intent on enabling small-scale businesses to fulfil orders and looking forward to partnering with African businesses to support with tools to enable them to serve customers and manage their business operations.
Hytch was founded by Laolu Onifade in 2021 and launched in May 2022. The startup received a warm welcoming into the business world as it acquired Six Hundred users on its platform only three days after it launched. This was obviously a feat for a business that just launched. The startup had expected to acquire about Two thousand users on its platform by the end of the second quarter of the year. Unfortunately, Hytch could not meet up with this target.
Three months after its launch, Hytch has to change its operation due to the common factor that shuts startups down, which is a lack of funds. Onifade had mentioned back in April that the funds the company had raised were from family and friends and was still trying to raise pre-seed funds.
Just as it was not able to meet targeted user acquisition, it also was not able to gather pre-seed funds. So far, even as there have been changes in its operation description on its social media page, the company has not formally declared its decision to change its operations.
Hytch is not the only startup that has faced difficulties in the ride-hailing industry, the likes of GoMyWay also had to stop their operations because of the inability to raise funds.
It is only hoped that Hytch will be able to gain ground in its new chosen area of operation, As we expect a statement from the startup soon.