Shuddle, an “Uber for kids” startup, is shutting down on Friday after running out of money.
In an email sent to drivers today, the company said that it worked hard to find the financial resources, but couldn’t raise the money in the end.
Since 2014, the startup had raised $13.2 million, including a $9.6 million round last year set aside for expansion, but had burned through the cash just in the Bay Area.
CEO Doug Aley told the San Francisco Chronicle’s Carolyn Said that it needed to raise an additional $10 million to $15 million to “pull us through to profitability.”
Faced with a market slowdown and investor demand for profitable businesses, the company failed to attract the cash and shuts down on Friday.
Shuddle also faced competition against other established startups – not to mention Uber – for transporting kids. In San Francisco, Shuddle went head-to-head with Kango, formerly known as KangaDo. In Southern California, HopSkipDrive is valued at $15 million and has already poached executives from Uber.