A London-based minicab company is claiming failed startup Karhoo owes it thousands of pounds.
Swift Cars wrote in a tweet last week that Karhoo owes the company and its drivers approximately £12,000.
Karhoo allowed people in London, New York, and Singapore to find and compare taxi fares but the Uber rival announced last week that it is shutting down.
The company allowed people to claim free rides with a variety of taxi companies by simply entering a promotional code. Multiple Karhoo users said they received hundreds of pounds in free rides as a result of these promo codes and other referral deals that Karhoo offered.
Karhoo has debts of approximately $30 million (£24 million), according to a Silicon Valley venture capitalist with knowledge of the company. The source, who wished to remain anonymous, claims that the company’s employees have not received any redundancy pay and that they are owed at least a month’s wages.
Media reports suggested that the company raised $250 million (£199 million) from investors but Daniel Ishag, the founder and CEO of Karhoo, told The Financial Times last week that this was a “misconception.” Albeit one that he never sought to address.
Bloomberg reports that Ishag put things like designer shoes and clothing, along with veterinarian’s bills for a pet dog, on a corporate credit card. First-class flights, Cuban cigars, and a “blow out” in Vegas were also put on the company accounts. Then there were the offices in London, Singapore, and New York, with a £12,000-a-month apartment in the latter.
Ishag could not be reached for comment.
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