Chicago tech company SpotHero laid off another 40 people on Wednesday as the on-demand parking startup battles economic challenges caused by the Covid-19 crisis.
The company confirmed to Chicago Inno that it notified more than 40 employees Wednesday morning that they no longer had jobs. SpotHero, founded in 2011, said employees across all of the startup’s departments were affected.
“Covid-19 has hit mobility and transportation services including parking really hard,” said SpotHero spokesperson Elan Mosbacher in an emailed statement to Inno. “Sadly, today we parted ways with many talented team members from across the organization and are actively supporting these individuals with their transition.”
The layoffs come about two months after SpotHero laid off a number of employees in March as the coronavirus crisis was growing in the U.S. The company now has 147 full-time employees, down from 217, Mosbacher said.
SpotHero is led by co-founders Mark Lawrence, CEO, and Larry Kiss, chief technology officer. Last year, the startup raised $50 million in a round led by Macquarie Capital, an Australia-based investment bank, bringing its total funding to more than $117 million.
At the time, SpotHero said its all-time sales reached more than $500 million, and that it was on pace to reach $1 billion in all-time transactions by 2020.
But due to the impact coronavirus has had on the country’s commuting patterns, parking demand has dropped significantly. In March, the startup published data on its website that showed the parking industry in general, much like the airline industry, saw parking volume losses up to 90 percent. However, The New York Times reported that between April 20 and May 17, search demand for monthly parking from new users nearly doubled on SpotHero’s app.
SpotHero is among dozens of Chicago startups that have downsized amid the pandemic and ensuing economic downturn.
