SAN FRANCISCO — It’s the end of the road for Sidecar.
The ride- and delivery-service is shutting down at 2 p.m. Pacific time on Dec. 31, its co-founders Sunil Paul and Jahan Khanna said in a blog post on Medium today. They cited a “significant capital disadvantage” as one reason for the closure.
“Today is a turning point for Sidecar as 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,” Paul and Khanna wrote.
Sidecar officials did not immediately reply to an email message.
The duo started the San Francisco-based company nearly four years ago with what they called the first “ridesharing” app. In February, it launched Sidecar Deliveries to broaden its business model.
But the company has struggled to compete with larger rivals Uber and Lyft, which dominate the market. Sidecar was only able to muster $35 million in funding, according to CrunchBase. In contrast, Uber is riding $6.6 billion in funding, while Lyft has raised $1.3 billion.
Sidecar didn’t lack high-profile backers, however. Google Ventures, Lightspeed Venture Partners and Sir Richard Branson are among its investors.
It isn’t necessarily the end of the Paul-Khanna partnership.
“This is the end of the road for the Sidecar ride and delivery service, but it’s by no means the end of the journey for the company,” they wrote in the Medium post.
Follow USA TODAY San Francisco Bureau Chief Jon Swartz @jswartz
Read or Share this story: http://usat.ly/1YQDTYr