Over 50 employees have already been fired, say sources
Shohoz, one of the fastest growing start-ups in Bangladesh that had plans to be a “super app,” has shut down its truck-booking services, and sources inside the company say Ride and Food could be next.
“Our board is reviewing our strategic vision with current verticals and future potential ones. As part of that review, we have stopped our truck booking vertical because its non-core and not synergistic to our consumer verticals,” Shohoz said in a statement.
Shohoz had launched its truck-booking service in 2019.
Meanwhile, over 50 employees have been sacked from analytics, operations, and other departments, according to sources inside the start-up.
An employee of Shohoz, who has been terminated, said the “lay-offs were very sudden.”
October 31 will be the last day of work for the outgoing employees, said the employee wishing to remain anonymous.
Another employee, who also preferred to be unnamed, said the Ride and Food could be shut down as these ventures have not been making much profit since Covid-19 struck the country.
But he added that Shohoz also brought in fresh recruits just a few days ago.
Shohoz launched its ride-sharing service in March 2018 and the food delivery in late October.
Managing Director of Shohoz Maliha M Quadir did not respond to queries, but Farhat Ahmed, the public relations manager of Shohoz, referred Dhaka Tribune to the official statement.
“Additionally, lockdowns during covid have transformed the ride hailing industry with drivers going offline. To be compliant with government regulations, we kept it off during Covid-19. We are now re-evaluating how and when to launch it,” the statement further reads.
“Shohoz remains committed to stay focused on bringing convenience to the masses of Bangladesh. We will continue to innovate to solve core problems where tech can bring convenience,” it adds.
Back in May, Quadir told Dhaka Tribune that the ride-sharing sector had “totally collapsed.”
Founded in 2014, Shohoz quickly took the lead in the online ticketing market.
Services offered by the platform included motorcycle ride-sharing, truck booking, and delivery of foods, groceries, and medicine, alongside online doctor consultation and digital education.
Amid the pandemic, it launched Shohoz Health, a digital healthcare service providing video consultation from health experts and on-demand medicine delivery.
The start-up raised $15 million in funding from Singapore-based investment firm Golden Gate Ventures in September 2018.
Shohoz also announced that it had secured an undisclosed amount of funding that year in a round led by Vostok New Ventures, Partech Ventures, Heritas Venture Funds, Cypress Capital, Tekton Ventures, and participated by existing backer Golden Gate Ventures.