So what does the Yo app do? All it does is send a message to someone else saying Yo?
Pretty pointless you may think but Yo has managed to raise over $1M in its initial finding round.
It seems that Venture Capitalists will invest in any Tech Start Up these days no matter how pointless their product offering appears.
Is it any wonder then that VCs seems to be falling over themselves to invest in Taxi Industry Tech Start Ups!
The Taxi industry is unique in the way in which our customers use our services, we pick them up from work, their home, a restaurant, the gym, basically anywhere that they might go in their daily life.
So what does this mean for the Tech start up? Well a lot of these Tech start ups are data harvesting, they are building up a picture of users lifestyles, from their usage of taxis they can determine what the passenger does, what they like, where they go, where they work, the can build up a customer profile of any user of these apps quite easily.
The thing that I find quite amazing but quite sad is that these VCs can obviously see the potential in both the taxi trade around the World and the data that they can harvest from the trade, they can see that there is a potential for substantial returns from investing in Taxi Tech start ups and hope to see their investment returned within quite a short period of time plus a healthy profit, the sad thing is that Taxi drivers do not realise the potential within their own trade and are happy to sit back and let these VCs basically rape their own trade and reap the benefits.
Hailo in London alone managed to register 14,500 drivers, now whether all of these drivers actively used the app for extended periods or just for a short time, they have all used it to some extent. Now if those 14,500 drivers had put £125 each in a bucket they would have raised a similar sum to hail’s initial funding round from which they launched.
If drivers in London had raised enough money to build and launch their own app then Hailo would never have been the success that it achieved, in fact Hailo’s whole business around the World rested on their success in London, so the whole makeup of he Taxi trades around the World might have been slightly different with the Taxi trade taking control of its own future and destiny, rather the an allowing these VCs to enter the market band take control.