One of the biggest tech companies in the United States could be on the verge of an epic collapse in the next three years if things do not turn around. Snap is the company founded by Evan Spiegel that makes the popular Snapchat texting app. The company went public in 2017. This is when things started to go wrong. The company now has a monthly cash burn of $68 million. At this rate, the company could be completely out of money in as little as three years. This is according to several experts who have been closely monitoring Snap’s financial situation.
Snap has faced a laundry list of problems since the company went public two years ago. First of all, the company decided to redesign their Snapchat app. The new version was universally panned. The response was far more negative than the company could have ever comprehended. This led to a lot of negative publicity. The user growth for the app also stalled in an epic way. The only way to prevent Snap from running out of money is for the number of users to start increasing dramatically. That shows no signs of happening any time soon.
Another problem Snap has been forced to deal with involves Android users having problems using the app. There were a number of major bugs that Snapchat users with Android devices were forced to endure. Snap was very slow to develop an update to fix the problem. They finally did release an update for Android devices. However, the damage was already done. Many Snapchat users were annoyed about the problems in the first place. The fact that it took Snap so long to fix them only made matters worse.
The people at Facebook have also been very hard at work making Evan Spiegel’s life a living hell. Facebook has cloned Snapchat’s very popular feature called Stories. This gives people less of an incentive to use Snapchat. Facebook cannot be sued because an idea like Stories is not able to be copyrighted under United States law. In fact, Facebook gave credit to Snap when they released their blatantly ripped off version of Stories. Facebook is not doing anything illegal. Many of Snap’s top executives have also been fleeing what they feel is a sinking ship. 20 execs have bid farewell to the company over the past two years. This instability at the top has not been good for the company.
Dil Bole Oberoi
