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End of the road for rideshare operator Sidecar
Co-founders Sunil Paul and Jahan Khanna wrote in a post on Medium that Sidecar will end service at 2 p.m. PST on Thursday.
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Sidecar Technologies Inc., the third-biggest US car-hailing service, said it will end its ride and delivery operations as the company is squeezed out by better-known competitors Uber Technologies Inc. and Lyft Inc. Sidecar spokeswoman Margaret Ryan declined to comment on what the “next big thing” would entail or if any Sidecar employees would be a part of it.
After beta testing in San Francisco in 2011, Sidecar formally launched in 2012, portraying itself as “the first on-demand rideshare community”.
Unlike Uber, you could choose your driver with Sidecar. This month, Lyft began offering passengers a fare estimate in its redesigned app.
But the company has struggled to compete with larger rivals Uber and Lyft, which dominate the market. More crucially, Sidecar never took root among Silicon Valley investors: it raised only $35 million in its lifetime; Lyft is now valued around $6.6 billion thanks to a recent $247 million boost from Saudi Prince al-Waleed bin Talal, while Uber towers over the entire field with a $65 billion valuation. As time passed and Uber and Lyft caught up with Sidecar’s lovely interface and intuitive app, prices slowly got higher and higher and I was forced to turn to Uber. If the driver wanted to charge more during rush hour they had the option, but other drivers could lower their price to attract riders. Starting in 2014, Sidecar started doing same day deliveries for e-commerce companies like EAT24.
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In August, the company became primarily a delivery service for businesses and it struck an agreement to deliver from 7-Eleven.