34% of startups fail due to lack of product-market fit. Learn how to avoid it for only $15!

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.

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Sidecar

Provided B2B delivery transportation network

General Information
Category
Transportation
Country
United States
Started
In 2011
Business Failure
Business Outcome
Acquired
Closed
By 2015
Cause of Failure
Competition
Founders & Employees
Number of Founders
Two
Name of Founders
Jahan Khanna, Sunil Paul
Number of Employees
Between 51 And 100
Funding
Number of Funding Rounds
5
Total Funding Amount
$45.5M
Number of Investors
21
Description

Sidecar was a transportation company based in united states (US). It was founded a couple of years after Uber but was never able to catch up with it despite the fact that it had a good product built on solid technology. One of the features Sidecar introduced was that of enabling riders to set their own price. In general, the app of the company offered much more control over their riding experience both for drivers and riders.

Cause of Failure

Sidecar had the top-notch technology but no marketing strategy. Car-hailing services depend on the traction present in the market and the network of drivers and passengers that they build. Sidecar could only become useful - and profitable - if there was always a high density of drivers and users. This is mainly where Sidecar failed. Unlike their giant competitors (Uber and Lyft) they didn't invest enough to market their product and gain customers. Uber reportedly lost almost a million in its first 6 months while it heavily focused on acquiring customers. Sidecar didn't have the backup funding to do that on a similar scale.

Also, instead of focusing on its powerful technology and the empowerment their app gave to its users, they tried to place themselves as an affordable alternative to Uber, which didn't really work for them. Weeks after shutting down on December 2015, though, they were acquired by GM.

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Berg

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ChaCha

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RoomsTonite

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$1.5M
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FoundationDB

Scalable NoSQL layered database

Software and Hardware
Acquired
$22.7M
Acquisition Flu
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United States
In 2009
By 2015
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Acquisition Flu
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Wantful

Online gift-giving service

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

Online retailer that offered daily deals

e-Commerce
Shut Down
$194.6M
Bad Marketing
e-Commerce
United States
In 2009
Active
Two
Between 1001 And 5000
More Than 50M
Bad Marketing
Shut Down
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