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Uber rival closes, report says it owes $30 million; government shuts human cloud platform Scarf

November 16, 2016

Karhoo, a competitor to human cloud firms Uber and Lyft, announced on its website that it shut down, and Bloomberg reports the company owes $30 million. Separately, Canadian regulators shut down human cloud firm Scarf.

In the Karhoo case, the company said on its website that it was unable to get further funding.

“Unfortunately, it became clear two weeks ago that the financial situation was getting pretty dire with Karhoo in urgent need of funding,” according to the site. “Discussion with a potential new backer ended last night forcing the company to stop trading.”

Bloomberg reported on the company owed $30 million upon its closure. The company at one time claimed to have raised $250 million.

Separately, a human cloud firm called Scarf that matched home chefs in Alberta, Canada, with consumers was shut down by government health agency Alberta Health Services.

“AHS attempted to work with the operator of Scarf; however, despite explaining the significant risk that this operation would pose to Albertans, the operator chose to proceed and launch the website, without approval of either AHS or the Government of Alberta,” according to Alberta Health Services’ website.

The agency said it took the step as part of its efforts to safeguard food safety.

Scarf operator Kian Parseyan told the Edmonton Journal that he tried unsuccessfully to involve Alberta Health Services in the project and decided to start the firm anyway. Then the agency shut the human cloud firm down last month, and Parseyan told the newspaper that he plans to sell his platform.

Human cloud services firms include other companies such as Uber and are part of the workforce ecosystem followed by Staffing Industry Analysts.