Juno’s parent company, Gett, killed off the NYC service with just six hours notice, while also announcing that Gett is partnering with Lyft to provide future service in NYC.
A Gett spokesperson told NYC on the Cheap Editor Evelyn Kanter that Juno drivers would be “paid in full” for any outstanding rides through 6pm Monday, when the service went dark, but had no information on whether Juno drivers would hired by Lyft, via the new partnership, or simply abandoned.
You would think that saving and guaranteeing the jobs of Juno drivers would be part of the deal Gett made with Lyft when it handed over itsJuno business and customers.
Juno has never really caught on in NYC, fighting an uphill battle from the start against app-based Lyft and Uber, and also such longtime NYC-based car services such as Carmel, Dial 7 and Allstate, which continue to have loyal NYC customers.
From the start, Juno has been struggling and bleeding cash. Gett apparently simply decided to cut the losses.
Unlike app-based ride-hail services Uber and Lyft, based in Silicon Valley, Gett is based in Tel Aviv and operates primarily in Europe and Israel.
The alliance with Lyft means that Gett customers are automatically switched to Lyft when they order a vehicle from Gett.
“Through the Lyft partnership, Gett’s corporate customers traveling inthe United Stateswill be able to request rides through the Gett app and be matched with a driver on the Lyft network. This partnership will allow Gett to expand its reach acrossthe United States, seamlessly serving its business clients on the Lyft network, all through Gett’s SaaS platform for business travelers,” according to a press release received by NYC on the Cheap.
Gett also blames “misguided” NYC city regulations on car services and on NYC’s new minimum wage regulations, which went into effect in February 2019, for the failure of Juno. Uber and Lyft also have been fighting those regulations.
According to Crain’s New York Business, Juno was already in trouble when Gett bought it in 2017 for $200 million in an all-stock deal.
At the time, Juno had been trying without success to raise money after having burned through most of a $30 million round from 2016.
The Gett spokesperson also told NYC on the Cheap that Juno customers “have been referred to Lyft, and new Lyft riders will receive $25 in Lyft credits”.