Jinn was an on-demand delivery app that allowed customers to order from virtually any shop in a city. Initially successful, it expanded rapidly but faced financial difficulties and intense competition. Failed acquisition talks led to its closure in October 2017, marking a swift rise and fall in the food delivery market.
Jinn's main product was an on-demand delivery app that connected customers with restaurants and couriers, offering a unique value proposition by allowing orders from virtually any shop in a city. Notable achievements include raising $19 million in funding and being recognized as a significant player in London's competitive food delivery market.
The story of Jinn's rise and fall is a compelling narrative marked by several critical phases:
Jinn permanently shut down on October 19, 2017, as reported by multiple sources. The company had entered administration and ceased trading, marking the end of its operations in the competitive UK food delivery market.
Jinn struggled to compete with larger, well-funded rivals like Deliveroo and UberEATS. While Deliveroo raised over $800 million, Jinn only managed to secure $19 million, making it difficult to sustain operations and expand. The competitive landscape in the UK food delivery market was simply too fierce for Jinn to survive.
Jinn's business model allowed for highly customizable orders, which made it difficult to achieve economies of scale. The significant coordination required between drivers, restaurants, and consumers added to the operational costs and complexities, ultimately hindering the company's ability to streamline its processes and reduce expenses.
Jinn faced financial difficulties due to poor management decisions, such as moving into a high-cost office space and failing to maintain a steady sales funnel. The company burned through its funding quickly, leading to a lack of financial stability and the eventual need to cut costs drastically.
In its final stages, Jinn attempted to find a buyer and met with three other food delivery rivals. Unfortunately, these acquisition talks fell through, leaving the company with no viable options to continue operations. This failure to secure a buyer was a significant blow to Jinn's survival prospects.
The closure of Jinn significantly affected its staff and couriers, who were owed wages and faced difficulties due to their status as independent contractors. This highlighted the vulnerabilities of gig economy workers and the need for better protections and benefits, further tarnishing the company's reputation.
Jinn's rapid rise and fall in the competitive food delivery market underscores the complexities and challenges startups face. If you're navigating a similar situation, book a demo with Sunset to see how we can help you avoid penalties and reduce liabilities.
Sunset takes care of all the legal, tax, and operational burdens when winding down a startup, allowing you to move on to your next venture seamlessly. Don't let the stress of shutting down hold you back—let us handle the complexities for you.