Trover was a photo-sharing platform for travelers, founded in 2011 by Rich Barton and Jason Karas. It allowed users to share and discover travel experiences through geotagged photos. Acquired by Expedia in 2016, Trover ultimately shut down in 2020 due to the COVID-19 pandemic's impact on the travel industry.
What Was Trover?
Trover's main product was a photo-sharing platform that connected users through geotagged images of travel experiences. Its unique value proposition lay in combining the functionalities of a guidebook and a gallery, inspiring travelers with visual content. Notably, Trover raised $12.3M in funding and was acquired by Expedia in 2016.
What Happened to Trover?
The story of Trover is a compelling tale of innovation, growth, and eventual closure, marked by several key phases:
Founding and Vision: Trover was founded in 2011 by Rich Barton and Jason Karas with the vision of creating a "mobile discovery network" that connected people through images of shared places and experiences. This unique concept quickly resonated with travelers, setting the stage for its initial success.
Securing Funding: In 2013, Trover raised $2.5 million in funding, which was crucial for expanding its operations and enhancing its platform. This financial boost allowed Trover to grow its user base and improve its features, making it a more attractive platform for travel enthusiasts.
Acquisition by Expedia: The acquisition by Expedia in 2016 was a significant milestone for Trover, promising to increase its reach and integrate it into a larger ecosystem. However, this also meant that Trover's future was closely tied to Expedia's strategic decisions.
Pandemic Impact: The COVID-19 pandemic had a severe impact on the travel industry, leading to a significant drop in revenue for Expedia. This economic downturn influenced the decision to shut down Trover, as the demand for travel-related services plummeted.
Closure Announcement: On July 1, 2020, it was announced that Trover would cease operations on August 1, 2020. Users were advised to download their images before the shutdown, marking the end of Trover's journey in the travel and photo-sharing space.
When Did Trover Shut Down?
Trover announced its closure on August 1, 2020, as detailed in a GeekWire article. The decision was influenced by the COVID-19 pandemic's severe impact on the travel industry, which led to a significant reduction in business for Expedia.
Why Did Trover Shut Down?
Impact of COVID-19: The COVID-19 pandemic severely disrupted the travel industry, leading to a significant decline in revenue for Expedia, Trover's parent company. With global travel at a standstill, the demand for travel-related services plummeted, making it unsustainable for Expedia to continue supporting Trover.
Financial Strain on Expedia: Expedia reported a 15% drop in year-over-year revenue and a 39% drop in gross bookings during the first quarter of 2020. This financial strain forced the company to make tough decisions, including the closure of non-essential services like Trover to streamline operations.
Layoffs and Restructuring: In response to the economic downturn, Expedia announced plans to lay off 12% of its workforce. This restructuring aimed to focus the business on core operations, leading to the discontinuation of Trover, which was deemed non-essential in the new strategic plan.
Strategic Shift by Expedia: The acquisition of Trover was initially seen as a way to inspire travelers through visual content. However, the pandemic forced Expedia to shift its strategy towards more immediate revenue-generating activities, sidelining platforms like Trover that were not directly contributing to the bottom line.
Operational Challenges: Maintaining a niche platform like Trover required resources that were increasingly scarce during the pandemic. The operational challenges, combined with the need to cut costs, made it impractical for Expedia to continue investing in Trover, leading to its eventual shutdown.
Lessons Learned from Trover's Failure
Adaptability: Be prepared to pivot your business model in response to unforeseen events like global pandemics to ensure long-term sustainability.
Financial Prudence: Maintain a strong financial buffer to weather economic downturns and avoid over-reliance on a single revenue stream.
Strategic Focus: Align your platform's goals with the core objectives of your parent company to ensure continued support and investment.
Resource Allocation: Efficiently allocate resources to essential operations, especially during challenging times, to maintain operational viability.
User Engagement: Continuously engage with your user base to build a loyal community that can sustain the platform through tough periods.
Market Awareness: Stay attuned to industry trends and shifts to anticipate changes and adapt your strategy accordingly.
Innovation: Keep innovating to stay relevant and competitive, even when facing external pressures that threaten your business model.
We Shut Down Startups
Trover's shutdown highlights the complexities and challenges of winding down a startup, especially during unforeseen crises like the COVID-19 pandemic. If you're facing a similar situation, Sunset can help you navigate the legal, tax, and operational burdens seamlessly.
Don't let the stress of closing your business overwhelm you. Book a demo with Sunset today to ensure a smooth and compliant wind-down process, allowing you to focus on your next venture.
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