Wireless-Internet enabled delivery service, ZapitOver Ltd. has joined the ever-increasing list of failing dot.coms and is closing down at the end of this month.
Set up at the end of August last year as a joint venture between 86 Ltd. and Deliverance Ltd., the company has watched the demise of its competitors and has reluctantly joined them, after failing to raise significant funding.
In December, the company changed its name from WapitOver to clarify that customers do not need a wap phone to order from the service. All items from the service have now been reduced for clearance.
86 Ltd. is made up of 86 Developments, the incubator that nurtured ZapitOver; and 86 Consulting, a digital strategy and media consultancy. Deliverance Ltd. has four years’ delivery experience in the Capital with an annual turnover of GBP4 million and a fleet of 50 mopeds.
ZapitOver was founded by chief executive officer, Will Sankey, joint managing director of 86 Ltd. and former media planning and buying director of BMP DDB Needham; and Elliot Ronald, managing director, strategy director of 86 Ltd. and a former management consultant with Ernst & Young.
Craig Morrison of the company said the original investment in the company was very small at around GBP250,000 from private investors. He added that they did not borrow much money, but did have significant interest from VC’s when the company started out. Looking back, he added that the company might have survived had they accepted further funding when it was offered. As it was, the company wanted to prove themselves by battling it out on its own.
To keep running, the site was looking for a cash injection of GBP250,000. Private investors were willing to commit half of that, but the company failed to raise the remainder. Morrison said that the company had reached a maximum of 40 deliveries a day and would have reached profit at 100 deliveries a day.
It is probable that 86Ltd will buy ZapitOver’s assets, such as its server and technology platform.