Overview

Product Description

Shuddle offered parents a way to get their kids safely to school, sports practices and other commitments. Shuddle did intense background checks on drivers, monitored drivers to ensure they stayed on route and didn’t speed or text while driving and offered real-time ride tracking to parents.

Quick Stats

2014

Started in

Apr, 2016

Closed in

11-50

Employee (s)

$12,200,000

Total Raised

Why did Shuddle fail?

Follow This Question - 0

Aaron Kazah

Updated on 21 Aug, 2017

No Financing or Investor Interest

No Sustainable Business Model

Ran Out Of Cash

When Shuddle <a href="http://fortune.com/2016/04/14/shuddle-shutting-down/" target="_blank">closed its office in April</a>, it was widely covered by several reporters, with most of them agreeing that the cause of failure was due to the company failing to get investment. This was reinforced with&nbsp;the CEO stating the cause of Shuddle's demise was due to the company being capital-intensive and eventually running out of money.Shuddle raised a total $12.2 million and lost money on every ride until 2016 (the year it shut down) when it started to make money on individual rides. This suggests that the cause of failure provided by the CEO was, in fact, true, however, wasn't the full story. Shuddle's business model was not sustainable and this played a huge role in them running out of money; they couldn't make any substantial amount to sustain the business.Shuddle could have still survived had it&nbsp;<a href="http://www.sfchronicle.com/business/article/Shuddle-Uber-for-kids-service-reaches-end-7249450.php" target="_blank">managed to raise more capital&nbsp;</a>however it couldn't successfully locate any investor who was willing to invest in their business. This may be due to the <a href="https://www.vanityfair.com/news/2016/04/shuddle-uber-for-kids-startup-shuts-down" target="_blank">shift in the climate of the private tech market</a>, where two years ago investors would have signed off checks trying to get in on another "Uber for x" startup, now, however, that doesn't seem to be the case.

2 Upvotes

Investors - 6