5/2/2023 0 Comments Snap travel“Our travel business … has actually been growing and we’re actually above pre-COVID levels. “I would see this as an expansion,” Fazal argued. The CEO pushed away the idea that Snapcommerce represents a pivot for Snaptravel during a time when the travel industry is struggling. Snaptravel also cut its co-founders’ pay and utilized the Canada Emergency Wage Subsidy.Įven as the second wave of COVID-19 infections leaves the state of the hospitality industry up in the air, Fazal said Snaptravel has seen a resurgence in the usage of its platform. Fazal refused to provide the exact number of people Snaptravel laid off but claimed that it was between one-quarter to one-third of the startup’s team, which currently sits at 150 (including customer service staff). In March and April, Snaptravel saw a 70 to 80 percent drop in sales, leading the company to lay off many of its staff. While these numbers may be troubling, they still are up from lows in March and April. Recent data shows that, on average, hotels are below 50 percent capacity, with two-thirds less than half full. In the United States, one of Snaptravel’s major markets, the hospitality industry continues to struggle. The timing of the move beyond the travel realm comes in a year of turmoil for the travel industry, brought about by the COVID-19 pandemic. Snapcommerce plans to leverage ChatKit AI’s technology to build out its vision for an all-encompassing e-commerce company. Its customers included D2C brands like MeUndies and Reese Witherspoon’s clothing line, Draper James. Much like Snaptravel, ChatKit AI connected consumers with businesses through conversational channels, also utilizing AI. NBA star Stephen Curry invested in Snaptravel in 2018 through his investment company, SC30.ĬhatKit AI was founded in 2016 and led by Mazdak Rezvani, who has since joined restaurant marketplace ResQ. ![]() Fazal declined to disclose the purchase price of the deal. To fuel the launch of Snapcommerce, the company acquired the intellectual property assets of Canadian chatbot marketing startup ChatKit AI, earlier this year. According to Fazal, the company has yet to raise capital specifically for the Snapcommerce brand, but has garnered interest from potential investors for future rounds. Having found traction and success with hotel bookings, the company decided to begin building its idea for a larger direct-to-consumer (D2C) e-commerce company, Fazal told BetaKit. Snaptravel began revving up for its expansion near the end of 2019. ![]() Fazal noted that with this vision for Snapcommerce in mind, Snaptravel had developed a “flexible, AI-driven platform, that is agnostic of vertical,” making it possible to transition the technology. Snapcommerce will use the AI-powered platform behind Snaptravel to expand into new verticals. RELATED: How SnapTravel leverages its Valley roots to keep tech talent in Canada The startup also claims to have driven more than $350 million USD in sales, which it attributes to building a “trusted relationship with consumers” through its predictive AI and chat features. Since launching, Snaptravel has garnered more than 2 million users. ![]() In late 2018, Snaptravel closed a $28 million CAD Series A round, with backing from the likes of Telstra Ventures, the venture arm of Australia’s largest telecom company, and NBA player Stephen Curry. The startup’s platform, powered by AI, allows users to find and book hotels and flights through conversational tools like SMS and Facebook Messenger. Fazal told BetaKit that he now considers Snaptravel the first of many future brands that will be under the broader Snapcommerce umbrella.įazal and his co-founder Henry Shi (CTO) launched Snaptravel in 2016. Snapcommerce and future brands will operate under Wise Travel Technologies, the same legally registered business name behind Snaptravel. “We’ve always believed in this vision and we just happened to start and launch with what everybody knows, which is Snaptravel,” he said. “From the very start, we had this vision that consumers want to have more meaningful relationships with the brands that they buy from,” Hussein Fazal, who has assumed the mantle of Snapcommerce CEO, said in a recent interview. “From the very start, we had this vision that consumers want to have more meaningful relationships with…brands.” ![]() Snaptravel has created Snapcommerce, which will act as a new overarching brand with the goal of launching a number of other brands under the ‘Snap’ banner. Snaptravel’s founders are venturing outside of the world of hotel and flight bookings to bring the startup’s model to other e-commerce verticals. Share on: Twitter LinkedIn Facebook Email
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