Small-and-midsize-enterprise-focused journey administration supplier Lola has shuttered its companies, in line with a discover on its web site citing “new issues to come back” for the corporate, which lower than three years in the past made a serious splash by inking an unique partnership with American Specific World Enterprise Journey.
With Lola ceasing operations, a minimum of for now, its company shoppers have been transitioned to Amex GBT’s Neo1 SME-centric journey and expense spend administration platform, in line with GBT. Initially launched in the UK final 12 months, Neo1 expanded to the U.S. in July.
In a collectively signed discover on Lola’s web site, firm CEO Mike Volpe and CTO Paul English touted “thrilling information in regards to the subsequent section” for the corporate however offered no particulars as to these future plans. Lola didn’t instantly reply to a request for remark.
Launched in 2016 by Kayak co-founder English, Lola garnered important consideration in its early years, racking up greater than $80 million in funding funding together with the landmark 2018 Amex GBT tie-up. However the firm was hit arduous by the shutdown of company journey amid the Covid-19 pandemic, asserting in March 2020 that it could lay off 34 workers—almost one-third of its workforce.
In a bid to diversify its choices amid the slowdown in journey, Lola in October 2020 rolled out a brand new company spending and expense administration device dubbed Lola Spend, which was constructed on the identical platform as its journey administration product, however may function on a standalone foundation.
The shutdown of Lola comes lower than a month after one other onetime darling of the SME and evenly managed company journey phase, Upside Enterprise Journey, additionally met its demise, citing the continuing results of the Covid-19 pandemic.
However as SME-focused journey administration startups face challenges stemming from the pandemic, established TMCs stay desirous to serve that phase. Amex GBT particularly has been keenly targeted on rising its SME enterprise, citing that aim as a key driver of its deliberate acquisition of Egencia, together with the enlargement of the Neo1 platform to the US.