Omni, a digital rental firm that has been battling to make its business model work regardless of shifts in direction, is closing down shop.
As indicated by a report from TechCrunch, a representative from the firm stated: “We’ll be winding down operations at Omni and closing the platform by the end of this year.” However, Omni has made no statement on Twitter and its blog site isn’t operational at the time of writing.
In October, it was reported that Coinbase was in discussions to get Omni’s engineering team to facilitate the advancement of its educational venture Coinbase Earn. That news came as Omni was purportedly laying off staff as it battled to make revenue after selling its business of physical storage in May, TechCrunch states.
As per the report, Coinbase has now taken over the dev team, with a representative saying:
“Coinbase has reached an agreement with Omni to hire members of its engineering team. We’re always looking for top-tier engineering talent and look forward to welcoming these new team members to Coinbase.”
A year ago, Omni secured $25 million in a funding round led by Ripple executives Chris Larsen and Stefan Thomas, who invested directly with the XRP digital currency. The company has supposedly raised $35 million in total.
The firm had begun as a type of Uber for personal storage, gathering things from clients’ residences and keeping them in a warehouse until required once again. Its low costs demonstrated to be too low for a feasible business, however, the report states.
It then proceeded onward to providing a platform for clients to rent out things they were not utilizing, before transforming the service again into a similar rental service for stores, but those too were unable to get adequate income, as indicated by TechCrunch.