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.

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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Shyp

On-demand shipping startup

Transportation
Shut Down
$62.1M
Multiple Reasons
Transportation
United States
In 2013
By 2018
Three
Between 11 And 50
More Than 50M
Multiple Reasons
Shut Down
PostRocket

Facebook page marketing platform

Analytics
Shut Down
$610K
Poor Product
Analytics
United States
In 2010
By 2013
Two
Between 1 And 10
Less Than 1M
Poor Product
Shut Down
Beepi

P2P used car online marketplace

Transportation
Acquired
$149M
Mismanagement of Funds
Transportation
United States
In 2013
By 2016
Two
Between 101 And 250
More Than 50M
Mismanagement of Funds
Acquired
DotCloud

Enabled developers to host, assemble and run their applications

Software and Hardware
Bankruptcy
$13.7M
Mismanagement of Funds
Software and Hardware
United States
In 2008
By 2016
One
Between 251 And 500
Between 10M 50M
Mismanagement of Funds
Bankruptcy
LayerVault

Allowed users to store and collaborate on design work

Design
Shut Down
$535K
Lack of Funds
Design
United States
In 2011
By 2014
Two
Between 11 And 50
Less Than 1M
Lack of Funds
Shut Down
Friendster

Social gaming site focused on entertainment

Social Media
Shut Down
$48.5M
Bad Market Fit
Social Media
Philippines
In 2001
By 2015
One
Between 11 And 50
Between 10M 50M
Bad Market Fit
Shut Down