Back a while ago, I mentioned that I was a former Peek customer. And a kinda loyal one at that. I got the Peek Pronto, lost it, and purchased a Peek Classic, switched to Blackberry and yet kept the Peek (with the attendant monthly service charge) as a backup. I would still be a customer except that, about a year ago, they told me and their entire customer case to go fuck ourselves. I didn’t take too kindly to that, and three months later they actually honored my request to cancel billing. After numerous online threats. And emails. And angry rants on their facebook page. It’s funny how the automatic billing was the only part of Peek that had 100% uptime and reliable 24/7 service.
(The possibly real backstory is that their Gateway intermediary to the T-Mobile network dropped them. Either early, or maybe late, or maybe without notice, but it meant that all those sim chips and all those IMEIs in the handheld devices were permanently turned off. The solution was to swap out the entire user base with new sim cards, and then reflash the devices with upgraded firmware with the new IMEIs. Overnight. Without notice. This part I was not actually upset about. The peek service was a backup, not mission critical. The part I got mad about was the fact that I read about it in Engadget a few weeks after the fact, never got the supposed emails that went out explaining everything and offering to fix things, and they billed me for 5 months after I requested they cancel my service.)
The part where Peek told their entire user base to fuck themselves was the bait and switch, where the CEO/President made public statements that all the hardware would be replaced FOR FREE. That was the bait part, and it worked like a charm, garnering lots of good press for a catastrophic event. The switch came a few days later, after all the tech blogs moved onto the next story, where the free part was replaced by $1 plus $6.95 shipping and handling, the so-called Lemonade Offer (because when a company tells you to go fuck yourself, you pay the company $8 to give you powdered drink mix lemonade). Of course, people were not happy about any of this, and many people just simply canceled at that point. I did, because if I want to deal with a mobile company that’s actively trying to screw me over, I already have a cell phone plan for that, thankyouverymuch.
So what do you do when you’re a company busy screwing your customers, losing customers, and generally circling the drain? You make a desperate sale offer for some easy upfront cash and worry about the future later.
And the future looks kinda bleak. Smartphones do everything the Peek does, but better and faster. Feature phones are cheap, but now have mobile web. Peek + cheap phone plan = same cost as regular phone plan on basic model smartphone (with the added benefit of having 2 heavy bulky hardware items to carry around instead of just 1). And you have no subscribers, except the ones that gave you all the money upfront which you’ve since spent and are now obligated to provide a service with no additional income. If you’re Peek, you’re screwed because YOU HAVE NO FUTURE. If only you had launched your product a few years earlier … except that someone did and it was called Research In Motion.
So you change the business plan entirely, you get out of the hardware business, you get out of the retail business, you repurpose your tech to serve as an enterprise vendor for carriers who want to add rich communication services to their cheap feature phones. (This is actually a good plan, btw). But what to do with your old customers? You remember them, the guys that stuck by you in your darkest hour, your most loyal fans, the ones that gave you enough cash to survive long enough for this crazy new plan to actually hatch and maybe work? If you’re Amol Sarva and your company is named Peek, YOU TELL THEM TO GO FUCK THEMSELVES AGAIN (maybe they didn’t get the memo back in Nov 2010).
Now, let me be clear, the old business model doesn’t work anymore, these customers were losing their “lifetime” service. My objection is to how Peek treats it’s clients. The fact of the matter is that the Lifetime offer was a desperate immediate cash grab now in exchange for a very uncertain future. But it was marketed as Lifetime, not Unlimited. Lifetime implies that you’ll be providing this service for a long time, Unlimited no limits for now, but makes no statement about the future. Unlimited is a more honest description. Secondly, Peek didn’t shut down, it didn’t go bankrupt. Bankruptcy is something people understand and can deal with. “Oh well, that offer did seem too good to be true, Amol’s comments about how it was untenable were right, the company went broke. Too bad.” Reform the assets and the tech around a new company, fire and rehire the talent, and move forward. Peek was a good idea that just couldn’t compete, but out of the ashes, CloudQuickster was born! (Wait, that name might have already been used by another company that just told all it’s customers to go screw themselves.) INSTEAD, Peek raised another round of funding, and then told all their most loyal and die hard customers that we were quite surprised so many of your were so stupid to have actually still been using our obviously terrible and money losing service. We’re turning off the lights, giving away the terrible hardware (so long as you pay for your own shipping), and doing something else for someone else and we don’t need or care about you any longer. Don’t let the door hit your ass on the way out. Thanks for the cash, suckers, and FUCK YOU. (The Fuck You refers to the fact that people got email telling them of the service shutdown a day after the service actually shut down.)
tl;dr, I KNOW.
Here’s the short version: Peek is a company that specializes in innovative communication solutions and is TERRIBLE at communicating to their paying customers. Peek will take your money and then leave you hanging high and dry, all while laughing at you during interviews afterwards. Peek is unreliable. Peek has completely and permanently canceled service to EVERY SINGLE ONE OF THEIR CUSTOMERS … TWICE … IN TWO YEARS (Nov 2010, Jan 2012).
DO NOT DO BUSINESS WITH PEEK. EVER!