Renault's Finance Group Purchases Karhoo Ride-Hailing

Karhoo Inc., a ride-hailing service that shut down in November after running out of money, has been bought out by a group backed by Renault SA, according to a report by Bloomberg. The revival is an effort to take on Uber.

RCI Banque SA, an automotive finance group owned by Renault, said it beat out 40 bidders for the company, says the report. Karhoo was a smartphone app for comparing prices from various non-Uber taxi services.

Despite Karhoo’s reports that it had raised $250 million, it had really only raised about $40 million and was struggling to generate revenue, according to the report.

CEO Daniel Ishag left Karhoo in November, and two Karhoo employees who attempted to keep the company afloat (Boris Pilichowski and Nicolas Andine) are now becoming co-CEOs of the company. Karhoo plans to relaunch its services sometime in 2017, says the report.

Click here for the full Bloomberg report.

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