Hytch, a Nigerian logistics startup and ride-sharing platform that connects car owners and passengers traveling in the same direction to help vehicles congregate to their destination, has announced the complete closure of all its operations with immediate effect due to what it described as severe economic conditions. .
The startup in an advertisement it launched via a file Social media channels wrote on February 2, 2023:
“It has been difficult, but we are finally closing operations. We no longer offer our services to companies or individuals. We value all our customers and well-wishers!”.
Hytch’s co-founder and CEO, Laolu Onifade, told TechCabal that severe macroeconomic conditions were the main reason for the company’s closure. “We couldn’t raise and sustain the money with the money we were making,” he said.
The Hytch brand has been full of promise for the nine months it has made an impact in the market, performing the dual functions of transporting people and transporting goods.
The company had in August 2022 abandoned its initial carpooling mission and turned to helping companies fill orders domestically and internationally. The latest setback has been blamed on a lack of funding, Onifade confirmed.
Onifade and his team have always used every opportunity to affirm the lofty intent of the brand and this can be seen in what can be called his constant obsession with the riding product on social media prior to its launch. He was able to build up such anticipation around Hytch that in the week of launch alone, the company amassed around 600 users.
The PR startup was huge, as the brand serenaded the audience with the benefits of its product offerings for everyday transportation needs. Once chirp that Hytch will be taking danfo buses into Lagos, saying, “You’ll all be thanking us for building this so soon.”
The sad truth is that after a brand with so much promise finally saw steady growth with the suspension of operations, that was not unrelated to the lesson that a ride-hailing service is built on deep pockets.
But it appears that this will not be the end of Hytch, as many industry analysts expected them to go back and relaunch the ride-hailing platform for the benefit of Lagosians (who had to go through a tough time with 0 transportation services and Nigerians as a whole).
Onifade and his partner, co-founder Femi Omoniyi, are still young adults in their mid-20s, so they have plenty of energy in stock to come back.
But when and how is unknown.