DripApp has shut down its mobile app that allows people to buy coffee from independent coffee shops at discounted rates.
The app is no longer in the App Store and those that have already downloaded it are unable to log into their account.
People who had credit left within the app will be reimbursed within 15 days, the company said last Wednesday.
In an email to users last week, DripApp wrote: “We arrived at a crossroads in DripApp’s future and had to make a major decision. The last few months have been really difficult, and we have decided to stop running DripApp as a coffee provider.
“The reality is that running an app is not simple; it needs supporting staff and funds. We are a very small team and it recently became quite complicated to run the app properly with our existing funding and team. Today we are facing a lot of bugs and issues in the app that we can’t get fixed.”
The app, used by around 30,000 people, allowed people to buy drinks plans which they could use to get discounted coffee at more than 150 independent coffee shops across London.
For example, you could buy a 10 drink “fancy” plan for £21 that would allow you to buy 10 lattes, flat whites, or mochas for £2.10 each instead of, say, £2.70, which is what many coffee shops in London charge today. You could also buy a cheaper plan that could be used to purchase americanos, espressos, tea, and filter coffee. For every drink purchased, DripApp would take a small commission.
DripApp raised £100,000 from investors a little over a year ago and the two founders put in £10,000 each, bringing total investment in DripApp to around £120,000.
Ruben Grigri, DripApp’s cofounder, told Business Insider last month that he was looking to sell the app, which encourages coffee drinkers to shun high street chains like Starbucks and Costa in favour of their local coffee shop.
The announcement comes after EasyJet’s founder pulled an investment offer. Sir Stellios Haji-Ioannou was preparing to invest up to £500,000 in DripApp at a £2 million valuation, according to Grigri.
Together with cofounder Jeremy Cortial, Grigri now plans to focus on building a platform called DripHub, which is a website that allows coffee shop owners to purchase coffee beans, teas, milks, cups, and other retail items.
DripApp did not immediately reply to Business Insider’s request for comment.