Public.Com Exits UK Market Barely Eight Months After Expansion

Public.com withdrew its operations from the United Kingdom in February after intense competition in the retail investment market.

Public.com exited the UK market within eight months of operating in the country. The company is turning its attention towards the US market to further its operations. The stock trading platform said that all UK operations would cease from May 3, but its US operations would remain.

Public.com’s exit from the UK market followed the launch of Robinhood, which made the market even more saturated and challenging for new players like Public.com to navigate. A report by City A.M. noted that Public.com would permanently close all UK user accounts after April 30, 2024.

Public.Com Shifts from the UK to US Market

Public.com noted that it was recording accelerated growth in the US market. Part of this growth was driven by the launch of recent features including a 5% high-yield account, corporate bonds, and options trading. Because of these features, Public.com was shifting its operations to the US.

https://twitter.com/CityAM/status/1762137644987830327

The company sent an email to its UK clients informing them of its plans to halt operations. The abrupt closure of its service comes as the company’s finances suffered a blow following the competitive nature of the US market.

Public.com launched its operations in the UK in July last year, marking its first expansion outside the local US market. While moving its operations to the UK, the CEO of Public.com, Leif Abraham, opined that London was the financial hub in Europe. As such, it was the ideal location for Public.com to expand globally.

However, barely a year after expressing much hope in its European expansion, Public.com is shutting down operations and it now wants to consolidate its resources in other jurisdictions. The closure of its UK operations could also affect the employees that were already working at the company.

The UK Market is Too Small for Many Players

According to some analysts, the closure of Public.com’s operations in the UK comes as the market becomes crowded. The competition in this market intensified in November last year after Robinhood announced plans to launch its operations in the region.

Robinhood is now competing for market share alongside some of the more established players in the market including eToro and Freetrade. Early retail trading platforms are being seen as gatekeepers due to their increased dominance in the market.

The UK has also presented numerous challenges for trading apps. Robinhood has delayed its operations in the UK several times before its launch last autumn. The launch followed support from the UK government, which wanted to promote growth in the UK fintech industry. This government support has played a crucial role in sustaining Public.com’s UK operations.

As for Public.com, its expansion outside the UK presents a new strategy for the company to channel its resources and operations in the US. The company plans to use the existing investments to promote services for its US customer base and sustain operations in the country.