'Uber For Kids' Is Shutting Down After Failing to Get More Funding

The company, founded in 2014, said on Thursday that would cease operations this week after failing to raise more funding to support itself.

learn more about Kia Kokalitcheva

By Kia Kokalitcheva

Getty
Shuddle ferries children.

This story originally appeared on Fortune Magazine

Shuddle, a Bay Area startup that ferried children to school and after-school activities, is shutting down.

The company, founded in 2014, said on Thursday that would cease operations this week after failing to raise more funding to support itself, according to a report in the San Francisco Chronicle and later confirmed to Fortune by the company.

"We worked hard with our existing investors to find new financial resources that would help us continue to grow. But, we could not raise the funding required to continue operations," the company said in a statement to Fortune.

Shuddle, often referred to an "Uber for kids," raised $12.2 million in venture capital. It is just the latest so-called "on-demand" service, once a hot niche in Silicon Valley, to shut its doors.

Last year, home cleaning service Homejoy and virtual assistant startup Zirtual shut down, for example. Parking startups Vatler and Carbon have also closed their doors recently.

To use Shuddle, parents booked a ride by noon the day before they needed it and could track their child's driver and ride in real-time through the mobile app. Shuddle provided both private rides as well as kiddie carpools.

Unlike ride-hailing services like Lyft and Uber, Shuddle and its competitors like HopSkipDrive in Los Angeles and Zum and Kango in the Bay Area all performed driver background checks and training they claim are on par with those of child care providers.

But like these classic car services, they have to keep increasing -- and balancing -- customer demand and driver supply to make the math work. In the case of Shuddle, a single ride's average price was $24, according a Shuddle spokeswoman.

According to the company, it has completed 65,000 rides during its operations, and its business grew by 50 percent in the last six months. But it wasn't enough.

In recent months, Shuddle had undergone a management shuffle. Founder and former CEO Nick Allen ceded the reins to current Shuddle CEO Doug Aley in November.

Shuddle will stop providing rides on Friday.

Kia Kokalitcheva
Kia Kokalitcheva is a reporter at Fortune.

Related Topics

Editor's Pick

Everyone Wants to Get Close to Their Favorite Artist. Here's the Technology Making It a Reality — But Better.
The Highest-Paid, Highest-Profile People in Every Field Know This Communication Strategy
After Early Rejection From Publishers, This Author Self-Published Her Book and Sold More Than 500,000 Copies. Here's How She Did It.
Having Trouble Speaking Up in Meetings? Try This Strategy.
He Names Brands for Amazon, Meta and Forever 21, and Says This Is the Big Blank Space in the Naming Game
Thought Leaders

The Collapse of Credit Suisse: A Cautionary Tale of Resistance to Hybrid Work

This cautionary tale serves as a reminder for business leaders to adapt to the changing world of work and prioritize their workforce's needs and preferences.

Business News

These Are the Most and Least Affordable Places to Retire in The U.S.

The Northeast and West Coast are the least affordable, while areas in the Mountain State region tend to be ideal for retirees on a budget.

Money & Finance

What Is a Good Credit Score and How Do I Get One?

Is bad credit holding you back? This article explains what constitutes a good credit score and how to raise your score if it's low.

Growing a Business

The No.1 Most Bankable Skill You Must Have to Succeed in 2023

If you don't foster this skill, you'll fall behind the pack financially and professionally in 2023.

Business News

I'm a Former Google Recruiter. Here's How to Land a Job in Tech — and What Can Blow Your Interview

A former Google recruiter says layoffs may be trendy, but tech workers are always needed. Here's how to land a job at a major tech company.

Starting a Business

5 Ways Entrepreneurship Can Help Teenagers Overcome Negative Peer Pressure

Here are some of the positives teenage entrepreneurship can have concerning peer pressure.