Shuddle, an 'Uber for kids' startup, runs off the road
In an email sent to drivers today, the company said that it worked hard to find the financial resources, but couldn't raise the money in the end.
Since 2014, the startup had raised $13.2 million, including a $9.6 million round last year set aside for expansion, but had burned through the cash just in the Bay Area.
CEO Doug Aley told the San Francisco Chronicle's Carolyn Said that it needed to raise an additional $10 million to $15 million to "pull us through to profitability."
Faced with a market slowdown and investor demand for profitable businesses, the company failed to attract the cash and shuts down on Friday.
Shuddle also faced competition against other established startups - not to mention Uber - for transporting kids. In San Francisco, Shuddle went head-to-head with Kango, formerly known as KangaDo. In Southern California, HopSkipDrive is valued at $15 million and has already poached executives from Uber.
- Should you be worried about the potential side-effects of the Covishield vaccine?
- India T20 World Cup squad: KulCha back on menu, KL Rahul dropped
- Sales of homes priced over ₹4 crore rise 10% in Jan-Mar in top 7 cities: CBRE
- Gold prices fluctuate as geopolitical tensions ease; US Fed meeting, payroll data to affect prices this week
- Best beaches to visit in Goa in 2024