Leap Transit

Provider of private transit and offers bus services
Startup Cemetery
GENERAL INFORMATION
Category:
Transportation
Country:
United States
Started:
2013
BUSINESS FAILURE
Outcome:
Shut Down
Cause:
Legal Challenges
Closed:
2015
FOUNDERS & EMPLOYEES
Number of Founders:
1
Name of Founders:
Kyle Kirchhoff
Number of Employees:
50-100
FUNDING
Number of Funding Rounds:
1
Total Funding Amount:
$2.5M
Number of Investors:
4

What was Leap Transit?

Leap transit was a private transport service based in San Francisco, they offered bus services with eye-catching and comfortable interiors. Leap was supposed to fill a gap in the transport system by serving people that didn't want to pay for an Uber ride every day and yet preferred a quieter environment to the public transport offered in the city. The buses had Wi-Fi, leather seats, AC sockets. They also had a mini bar offering snacks and beverages.

Ad

The Founder's Mindset

Unlock your potential as a founder. Discover the mental strategies that the best startup founders use to build successful products. In this video series, we’ll guide you to think like a top startup founder. Get free access to The Founder's Mindset →

Why did Leap Transit fail and shut down?

The primary reason for Leap quick exit from the private transport scene was their failure to comply with the San Francisco regulations. Besides not having requested permission from the city administration, they committed a second infringement when they removed the front door ramp which by law should be present in bus to make the vehicle accessible to people with disabilities.

Furthermore, although their service might have been useful, it was seen with a mix of dislike and outrage. The original inhabitant of the city generally seemed to dislike bus services that seemed to be aimed at the new “tech population” that came into the city and they even went so far as to protest their very presence. Another complaint was also that the buses also congested the SF streets.

Leap had not enough passengers to make a decent profit, even if they charged them $6 per ride. When the California Public Utilities Commission issued a cease and desist notice to the company they halted their operations.

Go on Reading

The All-In-One Newsletter for Startup Founders

Every week, I’ll send you Failory’s latest interviews and articles, curated resources for founders, and updates on how I’m growing the site to $10k/mo. Join other +7,000 startup founders!