Analysts say 90pc start-ups fail, there is no guaranteed success; urge businesses to hang in there.
After Swvl and VavaCars, Airlift — a bus service that later pivoted to the last-mile delivery segment — has announced the permanent closure of its operations in Pakistan, shaking the already wobbly start-up market of the country.
In a statement issued on Wednesday, the firm pegged global recession and the recent downturn in capital markets as the key reasons for the shutdown, claiming that economic activity across the board had a “devastating impact” on its business, forcing it to suspend operations on July 12.
“This has been an extremely taxing decision that impacts a large set of stakeholders and an emerging technology ecosystem,” stated Airlift, whose statement also contained several other reasons explaining its untimely demise.
The announcement, unfortunately, does not come as a shock, especially given the economic distress Pakistan has been in for the past few months.
The country’s start-up ecosystem is currently suffering from the tremors of skyrocketing fuel prices, global recession, uncertainty on the local front, limited foreign investment, and difficulty in finding sponsors, forcing firms to scale down operations, lay off employees, and service rollbacks.
Careem, Swvl, VavaCars, and Truck It In are some of the companies that have done this in recent times. As for Airlift, ominous signs were already present long before the final bomb dropped.
The company, referred...
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