One source stated that Omni had actually discussed informing rental partners in two weeks that it would be shutting down the rental service, though TechCrunch can not validate that. Another source stated Omni was frantically attempting to stop members of its group from speaking to journalism today.
Going forward, rather of storing goods itself, Omni would depend on regional shops for pickup and drop-off of rentals. Many users balked at the hassle of rentals when Amazon makes buying so easy.
Omni’s vision of cloud storage for the physical world and access over ownership had brought in capital from Flybridge, Highland, Allen & & Company, Founders Fund, Precursor and a wide selection of angels. But efforts to alter user behavior and operate a logistically complicated service, matched with spotty execution, led the startup to strike the skids and seek a soft landing.
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Omni’s rental business was doing inadequately without sufficient users paying a few dollars to obtain a power, bike or camping tent drill. Omni had actually prepared to release a white-labeled platform allowing brick-and-mortar merchants to operate and market their own rental service.
The company is in talks with Coinbase to hire some of the engineering personnel, who would have them work on Coinbase Earn, which rewards users with cryptocurrency for completing online curricula. Some employees are interviewing at Coinbase today. A Coinbase representative informed me there’s currently no main deal– prior to keeping in mind that there is absolutely nothing on the record they can share. Omni guaranteed TechCrunch a statement but then refused to talk on the record.
In spite of having plenty of cash left after raising $25 million from cryptocurrency business Ripple early last year, Omni feared the new platform would flop too and its potential customers would get worse.
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