Yes, but it's not at all clear to me that it failed because that bet failed. It's not at all clear to me why it failed, period -- the post says that they "were not able to find our place in the market", which could mean lots of things, e.g., that there were lots of users but no obvious monetization strategy.

In general, "Startup X failed" is extremely weak evidence for "People don't want the product that startup X was building." Take Rdio for example: given the success of Spotify, Amazon Music, and others, it would be absolutely incorrect to conclude from Rdio's failure that people didn't want on-demand music in their browser or a mobile app for a fixed fee.