Shuddle failure

Shuddle

Safe on-demand transportation for families

Description

Shuddle launched with the ambition to become the go-to service for parents with busy schedules that needed someone to drive their kids to their classes. Shuddle drivers, which were usually moms, teachers, and nannies, were said to have been hand-selected through the extensive screening process so as to assure kids would have a safe, reliable and on time ride service.

Stats

Category
Transportation
Country
United States
Started
In 2014
Closed
By 2016
Number of Founders
Two
Name of Founders
Nick Allen, Rodrigo Prudencio
Number of Employees
Between 11 And 50
Number of Funding Rounds
2
Total Funding Amount
$12.2M
Number of Investors
6
Precise Cause of Failure
Lack of Funds
Business Outcome
Shut Down

Cause of Failure

The company offered a much-needed service but parents became increasingly disappointed with it. Online reviews of the company show that the service that claimed to be the safest and most reliable to children, would routinely leave kids stranded, cancel the booking at the last moment or make them wait for long times. Shuddle customer support was also poor and, apparently, often no one would answer or return calls. Although there were parents routinely used the app and coped with the shortcomings since there was no other similar service in the area, there was still a big chunk of parents that would try the service once and vow to never use it again for how inconvenient it was.

Adding to the service quality, there were also concerns about security since Shuddle did not subject their drivers to fingerprints background checks claiming at one point that they were too expensive for them or that they were not needed.

Their business strategy also seemed faulty. Reports state that the company lost a lot of money on several rides and that they incurred losses on every ride they made before 2016. The charged a $9 per month subscription fee plus the ever-changing fare fees, and yet was said to struggle to pay for its operational costs and employees’ salaries.

Shuddle was unable to raise funds to keep themselves afloat, no one was interested in investing or acquiring them, and they closed down in 2016.

Go on Reading

Other Startups

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.

Subscribe to Our Newsletter!

Receive our weekly newsletters with the latest startup-related articles and interviews.

Shuddle

Safe on-demand transportation for families

General Information
Category
Transportation
Country
United States
Started
In 2014
Business Failure
Business Outcome
Shut Down
Closed
By 2016
Cause of Failure
Lack of Funds
Founders & Employees
Number of Founders
Two
Name of Founders
Nick Allen, Rodrigo Prudencio
Number of Employees
Between 11 And 50
Funding
Number of Funding Rounds
2
Total Funding Amount
$12.2M
Number of Investors
6
Description

Shuddle launched with the ambition to become the go-to service for parents with busy schedules that needed someone to drive their kids to their classes. Shuddle drivers, which were usually moms, teachers, and nannies, were said to have been hand-selected through the extensive screening process so as to assure kids would have a safe, reliable and on time ride service.

Cause of Failure

The company offered a much-needed service but parents became increasingly disappointed with it. Online reviews of the company show that the service that claimed to be the safest and most reliable to children, would routinely leave kids stranded, cancel the booking at the last moment or make them wait for long times. Shuddle customer support was also poor and, apparently, often no one would answer or return calls. Although there were parents routinely used the app and coped with the shortcomings since there was no other similar service in the area, there was still a big chunk of parents that would try the service once and vow to never use it again for how inconvenient it was.

Adding to the service quality, there were also concerns about security since Shuddle did not subject their drivers to fingerprints background checks claiming at one point that they were too expensive for them or that they were not needed.

Their business strategy also seemed faulty. Reports state that the company lost a lot of money on several rides and that they incurred losses on every ride they made before 2016. The charged a $9 per month subscription fee plus the ever-changing fare fees, and yet was said to struggle to pay for its operational costs and employees’ salaries.

Shuddle was unable to raise funds to keep themselves afloat, no one was interested in investing or acquiring them, and they closed down in 2016.

Go on Reading

Totsy

E-commerce selling prenatal care products

e-Commerce
Shut Down
$29.5M
Poor Product
e-Commerce
United States
In 2009
By 2013
Two
Between 51 And 100
Between 10M 50M
Poor Product
Shut Down
Maple

High-quality food delivery startup

Food and Beverage
Acquired
$29M
Bad Business Model
Food and Beverage
United States
In 2014
By 2017
Two
Between 101 And 250
Between 10M 50M
Bad Business Model
Acquired
Sunrise

Calendar app for mobile and desktop

Productivity
Acquired
$8.2M
Bad Business Model
Productivity
France
In 2012
By 2016
Two
Between 11 And 50
Between 1M 10M
Bad Business Model
Acquired
Wantful

Online gift-giving service

e-Commerce
Shut Down
$5.5M
Competition
e-Commerce
United States
In 2011
By 2013
One
More Than 10000
Between 1M 10M
Competition
Shut Down
Zoomo

P2P transactions of pre-owned cars

Transportation
Shut Down
$6M
Bad Business Model
Transportation
India
In 2014
By 2016
Two
Between 11 And 50
Between 1M 10M
Bad Business Model
Shut Down
Lookery

Demographic marketing services in social networks

Marketing
Acquired
$3.2M
Dependence on Others
Marketing
United States
In 2007
By 2009
Three
Between 1 And 10
Between 1M 10M
Dependence on Others
Acquired