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Fitness tracker firm Jawbone goes out of business, leaves customers hanging, in a case of ‘death by overfunding’

Things have gone all wrong for Jawbone, valued at US$3.2 billion just three years ago, as it goes into liquidation and does a disappearing act on its customers

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Jawbone’s Up pedometers, one of the fitness tracking products offered by the company, which has now entered liquidation. Photo: Jawbone
Associated Press

Tech companies have gone out of business before, but they usually leave traces for consumer contact.

Jawbone, however, a maker of fitness trackers and Bluetooth speakers which is in the process of liquidating, is taking a different tack.

Visitors to its website – including the Hong Kong one that is in Chinese – see a company that looks like all is well, and is promoting products – except that there are no links to buy them. In the US, a phone number contact directs callers to a general voicemail box. Customers complain in online review forums of leaving many messages in e-mail and phone form that haven’t been answered.

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How Jawbone is handling it “isn’t responsible”, says Gartner analyst Angela McIntyre. A Jawbone spokesperson had no comment.

Jawbone CEO Hosain Rahman. Photo: Bloomberg
Jawbone CEO Hosain Rahman. Photo: Bloomberg
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Early this month tech industry website The Information reported on the liquidation proceedings, saying that co-founder and chief executive Hosain Rahman is starting a new company to make health-related hardware and software services.

Unlike Jawbone, several recent examples exist where makers of past tech fizzles did much more to reach out to their customers.

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