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Shuddle

Safe on-demand transportation for families
Startup Cemetery
GENERAL INFORMATION
Category:
Transportation
Country:
United States
Started:
2014
BUSINESS FAILURE
Outcome:
Shut Down
Cause:
Lack of Funds
Closed:
2016
FOUNDERS & EMPLOYEES
Number of Founders:
2
Name of Founders:
Nick Allen, Rodrigo Prudencio
Number of Employees:
10-50
FUNDING
Number of Funding Rounds:
2
Total Funding Amount:
$12.2M
Number of Investors:
6

What was Shuddle?

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.

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Why did Shuddle fail and shut down?

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 who 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. They 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.

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