It is very well known that rideshare is one of the hottest industries on the planet right now. And for the past few years, giant companies like Uber, Lyft, Sidecar, and Postmates have dominated the space, all competing for the a foothold in the market. But on Tuesday, Sidecar shocked the world by announcing that is would be shutting its doors on December 31, 2015 at 2pm Pacific Time.
In a heart-felt post on Medium, Sidecar’s CEO Sunil Paul cited the Sidecar team’s innovations and role in changing the rideshare landscape.
While Sidecar made a name for itself for its flexible pricing options and its firm stance against SURGE-like hyperinflated pricing, they failed to keep up with the momentum of Uber and Lyft, who have $6.61 billion, and $1.26 billion in VC funding respectively. In contrast, Sidecar only raised $35 million, far below the industry’s leading competitors.
In my opinion, they also failed to stick to one business plan, shifting focus just as they seemed to be gaining ground in the rideshare market.
Last year, the company announced its shift towards a full-blown delivery business, and even landed a lucrative deal with Instacart as the company’s exclusive delivery provider.
While the Sidecar ride and delivery business is shuttered, don’t expect the company to completely fall off the grid. Sunil writes, “we prepare to end our ride and delivery service so we can work on strategic alternatives and lay the groundwork for the next big thing”.