AUTOnCAB is a Gurgaon based startup. It is basically auto-rickshaw booking app. The startup was launched in 2014 by Surendra Goel and Vinti Doshi. It is an auto-hailing mobile application focused on making your daily commute a breeze. With just one tap, get an auto rickshaw right at your doorstep. This new concept of travelling was an initiative to make your daily travel easier, smoother and happier. Rickshaws are ideal for urban settings because they can transport a relatively large number of passengers while taking up a small portion of the road. With an app like AUTOnCAB, company aimed to leverage this trend by organizing a large section of Autos in Indian Urban space. Their current cities of operation were Gurgaon, Noida, Chandigarh, Jaipur and Kota.
But this amazing startup has decided to discontinue its service to the customers. In the process, company has laid off its 40 employees. The main reason that has come up for the close-down is the competitions from its rivals. The company CEO, Vinti Doshi has commented that
“Uber and Ola have been offering a lot of discounts and incentives.. We (AUTOnCAB) did not want to burn cash unnecessarily. It is just a game of burning cash at the moment.”
It couldn’t sustain its business due to stiff competition from its heavily funded rivals. It was operated by New Delhi-based NGA Technologies Pvt. Ltd. AUTOnCAB had raised $1 million in funding from US-based Maan Ventures and an unnamed private investor. In September 2015, it acquired hyper-local grocery delivery startup BigZop for an undisclosed amount.
The on-demand autorickshaw hailing market is dominated by Chandigarh-based Jugnoo and Ola. Jugnoo, which claims to have 12,000 autos in its network, is present in 35 cities. Ola was operating in 24 cities under its brand as of 30 April 2016. Dozens of tech-driven startups have shut down in India this year after a funding frenzy over the past couple of years. The startup sector has seen 4,387 job cuts from August 2015 till date.