Shyp, a startup that wants to kill the post office, is scaling back operations and laying off employees
Shyp, the four-year-old VC-backed startup that wants to reinvent shipping, is significantly scaling back its operations and laying off employees to "focus on achieving profitability."
Shyp will offer its service only in San Francisco, and will no longer operate in New York City, Chicago, and Los Angeles, the company said in an email to customers on Thursday. In a blog post announcing the changes, CEO Kevin Gibbon noted that "the market for venture financing has changed and there is now a higher bar for profitability."
With $62 million in funding from firms like Kleiner Perkins and Sherpa Ventures, Shyp operates with an app that can summon a courier to your front door, pick up whatever you want to mail, package it, and charge a fee to send it on its way for you.
To achieve profitability, Shyp will primarily focus on small business customers and "high volume shippers." The app already integrates with eBay.
"Knowing what we know now, there's no question we'd do some things differently," Gibbon wrote on Thursday. "We would have built profitability in from the beginning. And shifted to serve business customers sooner. In a business that requires significant investment to grow physical operations across multiple cities, we would have focused on achieving success in one market before expanding into others."
A Shyp spokesperson declined to say how many employees were being laid off and said the company isn't currently seeking another round of fundraising. "The plan is to scale back, focus on achieving profitability in the San Francisco market, and then build from there," the spokesperson said.
- JPMorgan CEO Jamie Dimon told wealthy clients there's a chance the US is heading into 'something worse' than a recession, report says
- A 29-year-old woman found a mark on her head and was diagnosed with a fungal infection. It turned out to be invasive skin cancer.
- Here’s a list of stocks that can benefit from the festive season
- New Airtel and Reliance Jio prepaid plans compared
- Mobile accessories company Balaji Solutions files initial papers for public listing
- Ratan Tata launches Goodfellows which helps senior citizens make friends
- Rakesh Jhunjhunwala-backed Concord Biotech files for an IPO
- Ather 450X Gen 3 vs Ola S1 vs TVS iQube S – price, specs and features compared