Sidecar would shut down

Sidecar

The massive amounts of money being poured into US ride-hailing apps Uber and Lyft showed signs of forcing a local shake-out yesterday, as Sidecar, one of the market’s pioneers, revealed it would shut down its service on New Year’s Eve. The San Francisco-based company blamed what it called “a significant capital disadvantage” as it admitted it could not keep up with bigger competitors. Sidecar raised $35 million in its near-four year history, with prominent backers including Richard Branson, Mark Pincus, founder of online games company Zynga, and Fred Wilson, a New York venture capital investor. The amount pales by comparison with the roughly $10 billion raised so far by Uber, as well as Lyft’s $1.3 billion… Set up in 2012, the same year as Lyft, Sidecar was among the first to experiment with ride-sharing, in which users could summon non-professional drivers who use their own vehicles.

 

Richard Waters

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