Cat Taxi Posts Disappointing Quarterly Earnings
Kitty Kab, the on demand feline taxi service, reported disappointing quarterly earning this morning.
The company made waves last year when it launched in Portland, OR, named in 2013 as the most dog friendly city in America. Critics were skeptical of the wisdom of launching a cat taxi in a city dominated by canines, but the move paid off.
"As it turned out, a lot of cats didn’t want to be out alone with all those puppies on the loose, so they’d call a cab," said tech analyst Trish Patel of Business Insider. That early success led to rapid expansion to other cities — San Francisco, New York, Chicago, Atlanta — and an IPO in the fall.
But the very thing that drove success for Kitty Kab initially has been a hindrance to its growth.
"It was just a mirage," explained Patel. "The large concentration of dogs in Portland increased demand for the taxi service, but in other cities cats don’t want to be driven around.”
Kitty Kab’s user base in cities outside of Portland has stagnated as a result, while marketing costs have skyrocketed, leading to a $12 million shortfall this quarter.
The Fluffington Post hears that the company is exploring raising a $20 million round of venture financing to stay afloat, as well as considering a pivot to on-demand catnip delivery.
Via Kiersten Essenpreis.