Israel journey planning app Moovit has informed employees this evening about a wave of layoffs. There will be dismissals across all departments amounting to 20-25 employees, representing 10% of the company's 225 employees. This is the first round of layoffs at Moovit since the company was sold to Intel in 2020 for $1 billion - one of the biggest ever exits for an Israeli app.
The announcement comes after veteran cofounder and CEO Nir Erez became president three months ago and was replaced as CEO by Nir Bezalel.
Provides solutions in 100 countries
Moovit was founded 13 years ago as an app designed to help people plan their public transport journeys, combining different means of transport including trains, light rails systems, buses and scooters while scheduling the transition between them. In March when Erez stepped down as CEO, Moovit said it serves over a billion passengers a day in more than 100 countries and that in the past year, "The company's revenue has reached a peak and the number of users in the world has soared."
Bezalel said upon his appointment, "2023 was the best year in terms of revenue and active users. We stress revenue from the consumer side in several channels and we are on the way to profitability already this year." The layoffs will help the company achieve this target. Moovit currently produces revenue from advertising on the free app, a revenue stream that began 30 months ago.
Intel acquired Moovit in 2020 as part of a strategy to provide autonomous travel services including for sister-company Mobileye's autonomous taxis (robotaxis). But meanwhile the robotaxi dream has not been realized, while Mobileye's renewed independence from Intel has changed the picture for Moovit as well. Today, most of Moovit's revenue comes from advertising, with a small stream from from subscriptions, and from local authorities that use the app to operate transport services.
The company said, "Moovit is making the necessary adjustments in favor of concentrating on the company's core business and accelerating the transition to profitability. The company will do everything in its power to support employees who will be affected by the move. Moovit will continue to invest in expanding its portfolio of solutions for private and business users in mobility and other areas, in order to realize its business strategy."
Published by Globes, Israel business news - en.globes.co.il - on June 16, 2024.
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