Beleaguered myprice, the company formed to introduce US player priceline.com's technology locally, has announced it will not launch into the Australian and New Zealand markets.
"The myprice board of directors has re-assessed the prospects for the business and has decided not to proceed," myprice chief executive officer Peter Shore said in a statement. "This decision has been made at a time when myprice has cash reserves to meet obligations to its staff, customers and suppliers, with the remaining funds returned to investors," Shore said.
The Australian company launched its "name your price" telecommunication services in September but the expected launch of the myprice brand, along with a suite of travel services, will no longer take place. Around 30 jobs will be cut locally as a result.
The announcement comes on top of priceline's ongoing poor showing in the e-tailing world with its buyer-driven e-commerce model. The company laid off 16 per cent of its workforce in the US just over a month ago, and has recently cut 48 more jobs. The company claims the redundancies are part of the company's refocus on core businesses such as discounted air tickets, hotel reservations and phone services. Earlier this month, priceline announced it would not go ahead with its expansion plans into Asia.myprice will contact customers of its telecommunications service over the next week and will refund the cost of any unused minutes, the company said.priceline has been plagued by disappointing sales, unsuccessful ventures, the departure of key executives and a plummeting share price.
In September, the company announced its third-quarter revenue would fall short of forecasts - down about $US15 million from analysts' estimates to $345 million.
On Monday, stock was trading at $1.56 - a stark contrast from the high of almost $100 per share in March this year.