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.

This is Brought to You by:
Acadium

Acadium

120 hours of digital marketing from a remote apprentice for only $299 (+ $50 off!)

NerdPilots

NerdPilots

Get fast, reliable web, mobile and software development help 24/7.

This could be your AD. Sponsor Startup Cemetery to reach +10,000 entrepreneurs.

Subscribe to Our Newsletter!

Invite us into your inbox and get immense learning and 80+ deals on tools to help you scale your startup (worth up to $50,000)!

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Shipbeat

Shipping API for e-commerce companies

General Information
Category
e-Commerce
Country
Denmark
Started
In 2014
Business Failure
Business Outcome
Bankruptcy
Closed
By 2016
Cause of Failure
Multiple Reasons
Founders & Employees
Number of Founders
Two
Name of Founders
Joachim Rørbøl, Kenneth Svenningse
Number of Employees
Between 11 And 50
Funding
Number of Funding Rounds
1
Total Funding Amount
€1.2M
Number of Investors
3
Description

Shipbeat was a location-based platform designed primarily as an aid to small to medium-sized e-commerce businesses. Shipbeat aimed to help companies deal with logistics issues while maintaining their services at the top of their game. The idea was derived from the need to have a modern and reliable service provider, which could, in turn, lead to greater savings and revenues for the online retailer. Shipbeat also wanted to make the process of delivering goods to customers more transparent and flexible.

Cause of Failure

In order to achieve a win-win situation for customers and online retailers while at the same time gain a margin profit that could cover the costs of service maintenance, few prerequisites had to be taken care of.

The major obstacle Shipbeat encountered was the unwillingness of the main shipping carriers in Denmark to cooperate with the e-commerce platform. In other words, there were few of them who maliciously tried to stop the intentions of Shipbeat to reduce the overall logistics costs by re-selling what they initially had to offer.

The other serious problem they had to face, was when Shipbeat tried to expand their logistic services in other market areas. They had difficulties while trying to integrate a new set of carriers into their operations since forming new partnerships was often a negation heavy and slow process and they had not enough influence or user base to gain the full attention of critical carriers in new regions.

Moreover, from the technological and logistic side, any big or minor change often created an additional hustle for all parties involved, from the carriers to the customers as well as potential warehouses.

After the idea of reaching out to a shipping broker as a possible solution failed, the company declared bankruptcy.

Go on Reading

Sharingear

Marketplace for musicians to rent their instruments

Music
Shut Down
€15K
Multiple Reasons
Music
Denmark
In 2014
By 2015
One
Between 1 And 10
Less Than 1M
Multiple Reasons
Shut Down
Flud

Social news reader for different platforms

Productivity
Shut Down
$3.1M
Multiple Reasons
Productivity
United States
In 2010
By 2013
Two
Between 11 And 50
Between 1M 10M
Multiple Reasons
Shut Down
Aria Insights

Air vehicles for search and rescue missions

Software and Hardware
Shut Down
$39M
Multiple Reasons
Software and Hardware
United States
In 2008
By 2019
One
Between 11 And 50
Between 10M 50M
Multiple Reasons
Shut Down
Utrip

AI-powered travel planning services

Travel
Shut Down
$6M
Mismanagement of Funds
Travel
United States
In 2012
By 2019
Two
Between 11 And 50
Between 1M 10M
Mismanagement of Funds
Shut Down
Wesabe

Personal finance management website

Finances
Shut Down
$4.7M
Bad Management
Finances
United States
In 2005
By 2010
Two
Between 11 And 50
Between 1M 10M
Bad Management
Shut Down
Poliana

Web application that simplified the legislative system

Analytics
Shut Down
$15K
Bad Business Model
Analytics
United States
In 2013
By 2015
Four
Between 1 And 10
Less Than 1M
Bad Business Model
Shut Down
This is Brought to You by:
NerdPilots

NerdPilots

Get fast, reliable web, mobile and software development help 24/7.

Acadium

Acadium

120 hours of digital marketing from a remote apprentice for only $299 (+ $50 off!).

This could be your AD. Sponsor Startup Cemetery to reach +10,000 entrepreneurs.

Subscribe to Our Newsletter!

Invite us into your inbox and get immense learning and 80+ deals on tools to help you scale your startup (worth up to $50,000)!

Your subscription could not be saved. Please try again.
Your subscription has been successful.