Fitness tracker firm Jawbone faces liquidation

Latest news

    Jawbone websiteImage copyright Jawbone
    Image caption The Jawbone website is still trading

    Fitness tracker firm Jawbone is facing liquidation, and chief executive Hosain Rahman is launching a new health-based tech start-up, the BBC understands.

    The BBC has learned that reports of the liquidation published by news site The Information are correct.

    Jawbone said it had no comment.

    The firm has emailed customers, following months of silence, saying it has been “transitioning to a simpler care experience”.

    Some customers experiencing problems with their Jawbone device told the BBC that the company had not previously acknowledged their emails.

    Jawbone has not been active on Twitter or Facebook for several months.

    Its products were among the first fitness trackers on the market and it was once valued at more than $3bn (£2.3bn).

    ‘We haven’t forgotten’

    Jawbone user Lisa Cope told the BBC she received the email from the company’s customer support service late on Thursday.

    “We sincerely apologise for the lack of communication – while you haven’t heard from us for a while, please know we haven’t forgotten about you,” the message said.

    “Over the past few months we’ve been transitioning to a simpler care experience. Those changes took longer than expected, but we’re excited to share they’re now complete and we are now ready to address your request.”

    The company appears to be contacting customers who had been in touch with it between October 2016 and July 2017.

    Image copyright Getty Images
    Image caption Hosain Rahman co-founded the company that became Jawbone in 1998

    Ms Cope had been trying to resolve a problem with her Jawbone device for several months.

    She said that she was sent a “troubleshooting manual”.

    “They took our money for an inferior product and then, when it failed within warranty, the company ignored us all,” she said.

    “To be honest it has completely put me off fitness trackers. Maybe they’re not a sustainable business.”

    In March, the firm was forced to deny “abandoning customers” after several UK device owners contacted the BBC, complaining that they were unable to reach the customer service team.

    At that time a spokesman told the BBC its customer care was “days from being back online”.

    Tech news site TechCrunch reported in February that Jawbone – once a popular fitness tracker brand – intended to leave the consumer market and focus on healthcare providers.

    Ian Fogg, analyst at IHS Markit, told the BBC it was not uncommon for early innovators to end up withdrawing from a market once it matured.

    Image caption The Apple Watch has a popular health platform

    “The early fitness trackers were very simple devices, they had a sensor that tracked movement and step count, and then the companies inferred lots of other metrics – mileage, calorie count and so on from that one very simple sensor,” he said.

    “What’s been happening recently is that a lot of investment is needed to add more sophisticated functionality. Devices have gained screens and smartphone integration.

    “The newer products are marketed as fitness trackers but in many ways they are becoming much closer to a smartwatch.”

    Mr Fogg added that giants such as Apple and Samsung had also changed the market by including health-tracking features in their smartwatches.

    “To add things such as heart rate sensors and smartphone integration requires investment and that can often be the trigger that causes a company to ask: do we want to stay in this market?

    View the original article:

    “Often it’s not possible to continue business as usual with the existing product range.”

    In the same category are

    World Cup 2018: Germany revive World Cup hopes with late winner over Sweden Ola Toivonen scored his 14th goal for SwedenToni Kroos' injury-time winner against Sweden revived defending champions Germany's hopes of becoming the...
    Greenwich murder: Man arrested after body found in garden A man has been arrested on suspicion of murdering a woman who was found dead in a back garden in south-east London.The woman, thought to be in her 50s...
    England bounce back after SA defeat by beating New Zealand in T20 series England captain Heather Knight celebrates the wicket of Amy SatterthwaiteWomen's T20 tri-series, Taunton:England 172-8 (20 overs): Sciver 59, Beaumon...
    World Cup 2018: Football ban over ‘anti-Semitic’ video Image copyright Reuters A man has received a five-year football banning order after a video appearing to show fans singing anti-Semitic songs at the...
    World Cup 2018: ‘He can do everything’ – Frank Lampard on Ruben Loftus-Cheek England v Panama (13:00 BST on Sunday, 24 June)How to follow:Watch live on BBC One and the BBC Sport website, listen on BBC Radio 5 liveIf the leaked...
    Dancers compete in World Cup despite 24-hour flight delay Image copyright Eirian Thomas Image caption The girls were stuck at Birmingham Airport for nearly 24 hours A group of dancers delayed for almost 2...

    Leave a comment

    Your email address will not be published. Required fields are marked *

    This site uses Akismet to reduce spam. Learn how your comment data is processed.