Wag, a US-based petsitting service backed by telecommunications and internet conglomerate SoftBank’s Vision Fund, is considering selling its business, Recode reported on Monday.
The company has opened discussions with pet food and supplies retailer Petco following the formation of a strategic partnership agreement earlier this year that made Wag’s offering available to Petco customers.
Wag has also approached competitor Rover, over an acquisition, but that deal is not expected to go ahead. Petco has been an investor in Rover since 2013 but has also faced competition from retailer PetSmart, whose online subsidiary Chewy went public in June this year.
Founded in 2015, Wag allows pet owners to book local on-demand dogsitting and walking services in 110 cities across 43 US states, with walkers and boarders who are vetted and insured.
However, the company has struggled to increase its market share and become financially viable, and has executed multiple rounds of layoffs.
Wag was planning to expand internationally following a $300m investment by SoftBank Vision Fund in January 2018 but has since abandoned that goal. The deal valued it at $650m, up from a previous $350m.
The company has also suffered public relations setbacks due to stories of customers’ dogs running away or injuring themselves. Recode identified a California law that will force gig economy companies to provide benefits to workers as an additional deterrent for potential buyers.
Wag has so far raised $368m in equity funding. Its shareholders include Battery Ventures, General Catalyst, Sherpa Capital, Bullpen Capital, Tuesday Capital, Greylock Partners, Ludlow Ventures, RRE Ventures, Slow Ventures, Social Leverage, Structure Capital and Freestyle Capital.
