After years of trying to catch up to competitors Uber and Lyft, lesser-known ride-hailing startup Sidecar is ceasing operations.
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Ridesharing and delivery service Sidecar will close on December 31, according to a blog post from Sidecar co-founder and CEO Sunil Paul. Uber has raised more than $6 billion in venture capital, versus a mere $35 million for Sidecar, according to Crunchbase.
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Facing mounting competition from Uber and Lyft – both bigger and better-funded – Sidecar earlier this year launched same-day deliveries of everything from groceries to flowers and prepared food. Seattle may soon become the first city to let drivers of ride-hailing companies such as Uber and Lyft collectively bargain over pay and working conditions. The partnership gave Lyft a much-needed overseas presence and Didi Kuaidi greater fighting power against Uber. If you would like to discuss another topic, look for a relevant article. But with significant funding failing to come through, Sidecar’s founders have decided a new year means a completely new start. A spokesperson for Sidecar told Ars the company would not elaborate on what the next big thing is, exactly.
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Ltd. and India’s Ola to allow users of each app to hail rides from drivers of the other apps while they are traveling to the other country.
“My sense is that (Sidecar’s failure) doesn’t really indict the business model of having a separate courier for last-mile deliveries to compete with Amazon”, said Yoram Wurmser, a retail and e-commerce analyst for eMarketer. Sidecar, by comparison, has raised about $30 million.
The startup had initially been the first one to offer ride-hailing services, its staff being the ones who masterminded the idea of everyday drivers using their own cars to transport customers, without being under the constant supervision of a taxi company.
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Sidecar didn’t lack for high-profile backers, however.
