Listen: Struggling, Dog-Walking Service Wag Puts Itself Up for Adoption
"From wondering I'm David Brown and this is business wars daily happy Friday for ends. How much is that dog walking service in the window and it's the question a few prospective buyers of the pet sitting company WAG asking the struggling gig worker business is up for sale dale after a rough and tumble ride over the last few years? Jason Meltzer in brothers Joshua and Jonathan Viner founded the company in two thousand fifteen as a kind of Uber Uber for dog walking the idea. Download the WAGAP. Select your location and you can hire an independent Walker for fido instant the the market for all things are pets need is growing by leaps and bounds. You might say given our willingness to invest oodles of money and man's and woman's best friend and the idea felt like a winner it had grown quickly expanding into one hundred. US cities by early last year along with rival rover Wag. Tons suppressing considerable interest from investors in January of two thousand eighteen Softbank ponied up three hundred million dollars in funding valuing. The company at six hundred fifty million by the way the rivals of both raised. Just over three hundred million with that stash of cash. Softbank Plan to help the company go global and signalled its confidence that WAG would run happily all the way to the bank. Alas that didn't happen. Rival rover turned out to be stronger. Dog In this dog eat dog fight when win diviners and MELTZER founded WAG rover had already been around for four years primarily selling dog boarding. Although the two companies didn't originally go head to head. Dog morning costs a lot more but is less frequently needed than dog. Walking the rivals have come a lot closer together. They now both offer walks. Dog Sitting and overnight stays he's at the time of the Softbank Investment Wag was growing faster than rover but it's retreated since then hardly what observers expect when a fast growing startup gets a big boost of cash cash sales had been declining and Wag holds only about twenty percent of the pet sitting market in contrast to rovers eighty percent according to the Wall Street Journal part of the trouble appears to stem from the replacement of the founders with a veteran tech leader Hillary Schneider as CEO following the Softbank Investment a CNN investigation allegation shows significant dissatisfaction with her leadership from within the company former employees. Most of whom talked off record claim that she has been disengaged with the business they also say marketing dollars instead of growing actually shrunk after the investment the viner brothers are no longer associated with wag. They founded another another venture a scooter company called wheels both wag and rover have suffered from the problems dealing with real live unpredictable customers with four legs. There's some of whom run away in wags case a handful of pups have either died or been abused according to news reports over the years former employees told CNN an end that wags struggled to put in place procedures to ensure dogs safety. Obviously a huge problem for customers seeking to entrust their furry loved ones to strangers beset by problems wags suffered a series of layoffs. Still it inked. Partnership with PETCO. A few months ago on Pecos website customers can sign up for dog boarding services through WAG. PETCO may take a bid for the troubled company according to recode wag had approached its rival rover but rover fail to bite at a possible possible sale. The online publication reported more broadly wags problems are one more indication of structural weakness in Gig"