Radio taxi service GoCarz, which was one of the first to provide wi-fi services in the car, is shutting down car services. According to a notice on the site, the company is shutting due to lack of funds.
“The time has come for us to realize that even though we had a good business idea, we wouldn’t be able to continue due to lack of funds. Though we are shutting the taxi operations, GoCarz will continue to serve its clients for advertising needs,” the company’s Director Abhinav Gogia said.
The development was first reported by Medianama.
GoCarz had wi-fi built into their tariff meters and used to work with a login. The free service was rolled out in Delhi to begin with.
Looks like the proliferation of mobile Internet and smart devices rendered the “free wi-fi” proposition weak. Many new players as well as deep pocketed operators have made inroads into the space with massive fleets, mobile applications and marketing.
The cab rental industry has seen some healthy venture capital investments in the last year or so. The largely unorganized $6-billion domestic cab market is said to be growing at 25-30% year on year.
This morning, Intel Capital announced that it has invested in Savaari, an online cab company.