Exit Snap Zenly has become a big hit for some. The news was recently brought out and spread like wildfire. Some were happy because Snap is slowly removing some more applications from the parent company. So you can learn more about the news in the article below. It goes into detail about why Zenly was purchased and why it was removed.
Although Zenly has very few users in the US and a significant number of users in European countries, it is an incredible European success story. Zenly has been a major source of inspiration for the emerging generation of European entrepreneurs and has had a significant impact on the French tech ecosystem. It has made Snap’s reputation in France much more robust. The creators of Zenly have shown that they can create a social app with billions of users across Europe.
So know the reason why Snap shuts down Zenly. You can share your thoughts in the comments below.
Why is Exit Snap Zenly
Snap, Snapchat’s parent company, recently announced massive layoffs. They have confirmed to cut 20% of their workforce, nearly 1,200 employees. The reason is not unknown as countless companies are going through a significant financial crisis and are closing or minimizing their workforces.
The company added that cutting its workforce would save at least $500 million annually. Snap has also decided to rebalance its business and reduce its additional costs.
Zenly is a social card app acquired by Snap five years ago. It cost the company about $200 million. Zenly’s entire team was fired and the non-compete clauses were removed. It is common for companies to close apps and restructure their business plans.
Also Read, How to Flip the Camera on Snapchat in 2022 [Solved]
Zenly’s journey with Snap
Zenly was founded in 2011 in Paris. It raised 35 million before Snap came into the picture. Zenly is a great app that helps you find your friends on the map and navigate easily. Even after the Snap acquisition, Zenly operated as a separate entity. The development team is based in Paris and you wouldn’t find Snapchat’s name anywhere on Zenly’s app or website.
A few months ago, Zenly gave a huge update to their users that they are incorporating new features into their app. Their users can pin their favorite locations. After this update was released, Zenly’s co-founder and CEO Antoine Martin announced that he would be leaving the company with the CEO of Snapchat. Zenly announced that in a month’s time it would be competing against Google and Apple with its map data and engine. Zenly seemed unstoppable and it became one of Snapchat’s prized possessions.
Also read, Disable Location on Zenly | 2 ways to surprise them!
Reason behind the Sudden shutdown of Zenly
Earlier this year, Zenly had nearly 35 million monthly active users. Hence, despite its popularity, the main reason for bringing Zenly down was that Snapchat wanted to focus on Snapmap. Snapchat made some significant investments in Zenly in 2017. They doubled the team size, but ultimately failed to find a path to meaningful revenue.
According to Snapchat, it has any maps or locations in Snapchat. They don’t have a good cash flow to support Zenly’s growth.
Also read: Fake location on Zenly | Fool them with location hacks
I know you may feel bad that Zenly won’t be up and running anytime soon. It’s become commonplace as apps come and go. But given the current scenario, it is challenging for companies to exist. Therefore, apps with similar functions may cease to exist. You can find more similar articles in the coming days on our website, Path of EX.
Frequently Asked Questions
Why does Snap close Zenly?
Snap is shutting down Zenly as it becomes difficult for the company to continue the cost of more than comparable apps under their banner. Plus, they can save money.
What feature in Snapchat is similar to Zenly?
The Snap Map feature on Snapchat is almost like Zenly.
Are there any financial reasons for Snap to discontinue Zenly?
Yes, there are financial reasons for Snap to discontinue Zenly. The app was experiencing a financial crisis and closing the app would ultimately save nearly $500 million.