Move Loot failure

Move Loot

Furniture online marketplace

Description

Move Loot was a San Francisco based online resale marketplace for furniture. The company’s online market stage was designed with the goal of productively offering, purchasing, stockpiling and delivering second-hand furniture to its customers. Its focus was to meet the requirement for furniture transfer and urge individuals to reuse furniture while expanding the day and age in which furniture was utilized. Its target was on persons who needed to move houses and sell their furniture or those who desired to revamp their household furniture.

Stats

Category
e-Commerce
Country
United States
Started
In 2013
Closed
By 2016
Number of Founders
Four
Name of Founders
Bill Bobbitt, Jenny Karin Morrill, Ryan Smith, Shruti Shah
Number of Employees
Between 51 And 100
Number of Funding Rounds
3
Total Funding Amount
$21.8M
Number of Investors
18
Precise Cause of Failure
Bad Business Model
Business Outcome
Shut Down

Cause of Failure

Move Loot officially closed down in July 2016. One of the key issues pointed out was its poor plan of action. They selected to work a substantial furniture stockroom without precisely thinking about the expenses of running it and the assessed benefits. Thus, costs continued soaring while benefits stayed low. The startup also tried to expand and grow to New York and Los Angeles in the expectation of accepting some guaranteed financing. This lopsided cost – income condition prompted mass lay off of its employees.

Move Loot tried to move quickly it and attempted to aggressively scale up to its vision may be a little too fast. Move Loot would bounce starting with one model idea and then dive onto the next one before basically evaluating if the past model even worked. After some rumors of an incoming partnership and acquisitions that never materialized, poor customers review and massive internal layoffs, Move Loot had to officially bring its operations to a stop.

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