You might be wondering, why would Uber acquire a team that builds more Snapchat rivals? Well, it could to make Uber driver app looks more real. Uber is reported to acquihire Swipe Labs, that is a social app studio heads by Marwan Roushdy. He and his selected lot of engineer lads from the start-up having only dozens of persons will team up with Uber to help the company improve the driver experience within its drivers’ earnings team. One of the familiar sources from venture capital industry explained us the deal as “definitely acquihire. They were running out of cash,” instead of being a remunerative procurement. And the timings when Uber acqui-hires Swipe Labs is questionable.
The Startup’s Past Record Before Uber Acqui-hires Swipe Labs:
The past money making record of this startup before Uber acqui-hires Swipe Lab is reckoned to be $8.2 million. Moreover, this team of engineers had built four apps for sharing videos, photos and group texts. Since the terms of this acqui-hire kept undisclosed, the worth of the deal is approximately much lesser than the $56 million valuations, which Swipe Labs raised with a $5.6 million lately. To cut right to the chase, this means it is quite a risky to invest in initial-stage social app startups.
However, it is worth noting that Swipe’s founders Roushdy met Addison Hardy during a work process of Connect ( that’s now defunct app). This team of two thought out to set up a startup of renting furniture Fonzy, but that somehow failed. Afterward, these lads managed to raise funds for building Tag, for photo sharing privately. But this couldn’t bring bear fruits.
Then this twosome built those ideas into Swipe, an app that enables you to share videos and photos, appearing in a stack next to other users’ content on friend’s home screen of Swipe. During the first few weeks, this program excelled and had started growing to millions of users, making $5.6 million, quite a lucrative valuation. While SnapChat was bursting out with a massive number of users that boosted its popularity; Swipe started petering out. And eventually, this made Hardy leave the venture. Then we heard Uber acquires Swipe Lab.
Why Uber Acqui-hires Swipe Labs?
This should come as no surprise that Uber is its toughest time, especially after the company’s former CEO separated his ways due to some scandals. Seemingly, these issues are the reason why the company is unable to hire from the competitive market of Silicon Valley. Additionally, Uber drivers had been facing monetization issues lately. But ever since the company started tipping, it’s got a shift in that problem. As per company’s vision and the reason why Uber acqui-hires Swipe Lab is that; it could make it even easier for the drivers to line their pockets. We can only hope that Uber at this time won’t dare to dabble into social media app to jockey SnapChat.