CarGO to end operations Sunday

Food delivery and ride service carGO announced it will cease operations Sunday.

A post on the company’s website stated the company will close at 6 p.m. Restaurants and drivers will be paid for all transactions that are completed, the post states.

The unsigned statement said the closing has been an option for several months.

“carGO’s investment leaders announced in early December, 2020 that it planned to close the business by the end of the year. At that time, the group at Codefi who had not been involved in carGO for over a year, jumped back in with hopes to reinvigorate carGO to its early days from 2016-2018 when it had a local, small-market focus,” the statement reads. “We worked 15 hours a day, seven days a week the last two months to assess the current challenges and trying to find a sustainable business model with just a local focus. Despite considerable investment of additional capital and our heartfelt desire to ‘make it work’ just local, we realized the business in its current condition would require more time, money, and resources than we could possibly provide.”

The statement said several factors played into the move.

“As carGO began its efforts to expand its service offerings and into larger markets to support its business model and growth, it faced unprecedented competition from big tech companies who were internationally funded and losing billions of dollars a year, and then COVID-19. Unfortunately, the costs to continue funding growth and the search for a sustainable business model became insurmountable,” it states.