GERMANY. Stephan Uhrenbacher is in the process of selling Flio GmbH to SOS Travel SpA in Italy. Uhrenbacher, who set up the business in late 2014, said he had lost money in a business for the first time, as had investors.
“Flio GmbH, the German subsidiary which actually runs operations, as well as the assets from Flio Ltd, a UK company have been sold on to SOS Travel who already have a model to make consumers pay,” Uhrenbacher said.
“The parent company, Flio Ltd UK, has been put into administration. The lead investor, who gave the latest investment as a loan, did elect not to convert this investment loan into equity.”
The airport information app, which has been installed more than 1 million times can provide flight updates, as well as retail and dining information and discounts. “I am hugely grateful to anyone who has devoted their energy to making airports less confusing and less stressful,” Uhrenbacher added.
Uhrenbacher said he will now be able to focus on other start-ups he works with, including one that helps people get the best treatment for cancer, one that can help aircraft engines save fuel and another that helps monitor global methane emissions.
Lessons learnt Uhrenbacher gave a number of lessons he learnt while establishing the business. “Most importantly,” he said. “Even though some of the very largest retailers scheduled meeting after meeting with us, it took us too long to realise: Retailers were not prepared to pay us any money. They did like to work with us to show to the airports how digital they were. But retailers did not need us in 2017. “The way the industry works is: Retailers bid long term contracts with airports. Nearly all of the profits go to the airport, hence the profit margin of a well-run airport is very high. The profit margin of even the best-run retailers is extremely small. While we were always able to generate some extra margin, we did not move the needle for them.” |
