Startup Cemetery

A big resource for entrepreneurs and startup owners, in which we have collected and analyzed why +100 big companies have failed. Learn from mistakes, and avoid being part of the 90% of businesses that fail.

Leap Transit

Provider of private transit and offers bus services

General Information
Category
Transportation
Country
United States
Started
In 2013
Business Failure
Business Outcome
Shut Down
Closed
By 2015
Cause of Failure
Legal Challenges
Founders & Employees
Number of Founders
One
Name of Founders
Kyle Kirchhoff
Number of Employees
Between 51 And 100
Funding
Number of Funding Rounds
1
Total Funding Amount
$2.5M
Number of Investors
4
Description

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.

Cause of Failure

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 so as 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.

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