Startup Cemetery

A big resource for entrepreneurs and startup owners, in which we have collected and analyzed why +100 big companies have failed. Learn from mistakes, and avoid being part of the 90% of businesses that fail.

Flowtab

Mobile app to order drinks on nightclubs

General Information
Category
Food and Beverage
Country
United States
Started
In 2011
Business Failure
Business Outcome
Shut Down
Closed
By 2013
Cause of Failure
Bad Business Model
Founders & Employees
Number of Founders
One
Name of Founders
Mike Townsend
Number of Employees
Between 51 And 100
Funding
Number of Funding Rounds
Nothing
Total Funding Amount
-
Number of Investors
Nothing
Description

Flowtab was a mobile app that wanted to use technology to solve the problem of long queues in bars and hospitality venues. Flowtab created an app that would show users a list of drinks they could order from their mobiles without having to wait for the bartender to take their order. The app was connected to the bar's iPad which would then sync the orders to the POS terminal of the bar and payments would be are sent to the bar's bank account.

Cause of Failure

Flowtab tried various business model but could never found one that was both feasible and profitable. On paper, any bar would have wanted to use such an application. In reality, it proved quite hard for the company to get deals. This type of service requires a large number of users to be profitable since they only charged the customer $1 after they successfully placed an order. However, users don't usually stick to the same bars but would often choose a different one from week to week, and most users only used the app once or twice per month. Things could have still worked out, but when, in a promotional event they invited about hundred people to various clubs, their technology failed them and the founders resorted to serving drinks themselves to angry customers. This caused many people to leave one-star ratings for the app further thinning the chances of the app success.

Since their founding was limited they were also understaffed and a very small team had to take care of everything. After a couple more pivots and some members of the team leaving to pursue other goals, Flowtab finally decided to shut doors.

Go on Reading

Flowtab

Mobile app to order drinks on nightclubs

Food and Beverage
Shut Down
-
Bad Business Model
Food and Beverage
United States
In 2011
By 2013
One
Between 51 And 100
Nothing
Bad Business Model
Shut Down
Dazo

India's first curated food demand platform

Food and Beverage
Shut Down
No Data
Competition
Food and Beverage
India
In 2015
By 2016
Two
Between 11 And 50
No Data
Competition
Shut Down
Sidecar

Provided B2B delivery transportation network

Transportation
Acquired
$45.5M
Competition
Transportation
United States
In 2011
By 2015
Two
Between 51 And 100
Between 10M 50M
Competition
Acquired
Monitor110

Real-time internet monitoring services

Analytics
Shut Down
$17.3M
Multiple Reasons
Analytics
United States
In 2003
By 2008
One
Between 1 And 10
Between 10M 50M
Multiple Reasons
Shut Down
Sip

Daily tappable tech news and stories

Education
Shut Down
Nothing
Multiple Reasons
Education
United States
In 2018
By 2019
Three
Between 1 And 10
Nothing
Multiple Reasons
Shut Down
SpoonRocket

Next-gen, ultra-fast delivery platform

Food and Beverage
Shut Down
$13.5M
Competition
Food and Beverage
United States
In 2013
By 2016
Two
Between 11 And 50
Between 10M 50M
Competition
Shut Down