Seattle travel planning startup Utrip will shut down after critical deal falls through

Seattle travel planning startup Utrip will shut down after critical deal falls through

4:57pm, 7th May, 2019
Utrip CEO Gilad Berenstein accepts the award for Young Entrepreneur of the Year at the 2015 GeekWire Awards. (GeekWire Photo) journey is over. The Seattle-based trip-planning startup is ceasing operations after a deal that would’ve kept the company afloat fell through at the last minute. “We are devastated to no longer be able to continue to operate and partner with you,” Utrip CEO said in an email to clients obtained by GeekWire. Bernstein declined to comment further when contacted by GeekWire. Utrip’s services will remain online until June 7, at which point the servers will come down, according to the email. Founded in 2011, the company offered free itinerary-planning tools to consumers built with machine learning. Users entered information about the types of activities they like to do when traveling and related preferences. Utrip would then produce a schedule and other information to help them plan their trips. Utrip made money by and building products for businesses in the hospitality space, such as hotels and cruise lines. In 2017, to create a trip-planning portal stitching together flights, hotels, must-see sites, activities, and restaurants. Other “strategic partners” included Hilton, Holland America Line, Allegiant, and Starwood Preferred Guest. “Leveraging machine learning and advanced traveler preference data, Utrip enables travel companies, both large and small, to increase conversion rates, ancillary revenue, customer loyalty and engagement,” the company wrote on its . Utrip’s itinerary service. Utrip also had some high-profile investors. Executives from Apple and Costco, as well as Acorn Ventures, Plug and Play, and Tiempo Capital, participated in in early 2017. Seattle hotelier Craig Schafer was also an investor and former sat on Utrip’s board of directors. The company has 27 employees, according to . It was ranked No. 194 on the , our index of top Pacific Northwest startups. “We are so grateful for your partnerships over the years and for enabling us to help millions of travelers see the world in unique and personal ways,” Berenstein said in his email. The CEO graduated from the University of Washington in 2009 and at the 2015 GeekWire Awards. He helped launch Utrip after a trip to Europe left him wanting a more personalized travel experience without paying a travel agent or spending a lot of time to research. Other Utrip founders include and Yair Berenstein. Travel startups have taken off over the past five years, with a bevy of competitors such as Noken and Journy offering similar services to Utrip. Over that period, travel companies raised more than $1 billion in venture capital funding,
Despite a down quarter, Tesla is planning new products — including car insurance

Despite a down quarter, Tesla is planning new products — including car insurance

7:39pm, 24th April, 2019
Tesla CEO Elon Musk introduces the Tesla Semi truck and an updated version of the Tesla Roadster at a 2017 unveiling. (Tesla via YouTube) Tesla today reported wider-than-expected financial losses in the first quarter — due to what the company said were delivery challenges, a seasonal dip in demand and the unanticipated effects of pricing decisions. Despite the downturn from what had been a profitable couple of quarters, Tesla CEO Elon Musk was bullish on several fronts, including rollouts for the company’s and , plus the opening of Tesla’s Gigafactory in Shanghai, China. Musk is even planning to offer car insurance policies starting next month, with pricing determined by the data that’s received from the company’s cars. “We have direct knowledge of the risk profile of customers and the car,” he explained during today’s teleconference with financial analysts. “If they want to buy Tesla insurance, they have to agree to not drive the car in a crazy way. Or they can, but then the insurance rate is higher.” If it’s done right, in-house insurance could add another revenue stream to Tesla’s bottom line. That could help ease the pain for Tesla’s accountants as well as for investors, who have seen share prices slump due to concerns about long-term profitability. (The price slipped nearly 2 percent during today’s trading, to $258.66 at the close.) Net losses amounted to $702 million, and adjusted net losses per share were $2.90. That’s 13 percent worse than the year-ago figure and . Revenue was $4.5 billion, which was better than the year-ago figure but not as high as analysts thought it would be. In its , Tesla said there was a production jam-up that forced a large number of deliveries to be deferred into the second quarter. “This is the most difficult logistics problem I’ve ever seen, and I’ve seen some tough ones,” Musk said. In all, 63,000 electric cars were delivered during the first quarter, which fell far short of expectations. In addition to the logistical challenges, Tesla said pricing changes for its Model S and Model X cars caused a higher-than-anticipated return rate. One disincentive to sales was the gradual phase-out of federal tax credits for electric vehicles. Previously: The good news is that powertrain improvements have boosted the performance and range of those two models: The maximum range was extended to 370 miles on a full charge for the Model S, and 325 miles for the Model X SUV. For the past two years, Tesla has been focused on ramping up production of the Model 3, which finally . Tesla reported producing 63,000 Model 3 cars during the quarter and is aiming to raise that figure higher. “If our Gigafactory Shanghai is able to reach volume production early in Q4 this year, we may be able to produce as many as 500,000 vehicles globally in 2019,” the company said in its shareholders’ letter. “This is an aggressive schedule, but it is what we are targeting.” Musk said that the Shanghai construction project was “going incredibly well,” and that he was receiving “midnight Gigafactory email” on an almost nightly basis. On other financial fronts: Tesla’s cash on hand fell by $1.5 billion over the course of the quarter, to $2.2 billion. A $920 million convertible bond repayment accounted for most of that reduction, and the delivery snag was an additional factor. Another, linked to Tesla’s SolarCity subsidiary, is said to be due this month. One analyst asked Musk whether he wished that he had persevered with efforts to take Tesla private last year — efforts that ended up getting him in hot water with the Securities and Exchange Commission. “I would prefer that we were private,” Musk replied, “but unfortunately that ship has sailed.” Musk told analysts that “at this point I do think there is some merit to raising capital,” but he didn’t provide further details.