After launching just less than a year ago, cab service startup Zapacab may just make a premature exit.
According to Human IPO, the Cape Town based startup is up for sale and if no buyer for can be found, Zapacab will have no choice but to close it’s doors as it is not scaling sufficiently.
“I think it’s too early for a Hailo-like play in developing countries because the smartphone penetration is not high enough yet. Demand from passengers was great but we had pain in getting enough drivers to service the demand,” said Zapacab CEO Rupert Sully.
“In a couple of years more of the taxi drivers will own their own smartphones, meaning it will be much easier to set them up – cheaper buy-in from them and no need to educate around smartphone usage.”
We’ll keep you posted once we get more details on the situation.