Popular Social Networking Site Shuts Down
A famous social networking site has recently closed down due to low advertising revenue, forcing the company to stop operating this once lucrative business.
In September 29, Uber.com had shut down its operation and thousands of its members are wretched knowing that their accounts can no longer be accessed.
Founder and CEO Scott Sassa said that his company’s tragic ending is caused by the economic slowdown the country is experiencing, forcing many industries to cut costs by temporarily reducing the marketing and advertising expenses. With major investors including Sterling Stamos, Universal Music Group, and Discovery Communications pulling out it its assets and investments, this social networking and web publishing had started crumbling down to its feet.
Few months ago, with an alarming decline of advertising revenue, the site has informed its members that the blogging service will be permanently shut down due to financial crisis the company is experiencing.
From the first quarter of the year, the site’s number of visitors plummeted dramatically, a trend which has never been expected by anyone. In May, Nielsen Online Report revealed that the social networking site only garnered about half a million visitors, a number which has been continuously shrinking. (This report has been opposed by Sassa, stating that his company acquired over 2 million visitors during this month.)
With the shut down of this popular social networking and web publishing firm, a lot of businesses which rely on the virtual community are now planning to create their own contingency plan that will serve as a solution in case they will also experience the same thing that had happened in Uber.com, with the main goal not to experience the fate of this once seemingly indomitable company.
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