Sidecar (company)

Sidecar is a transportation network company that connects people for real-time ridesharing. Its headquarters are in San Francisco, California, but serves many cities. People can choose a ride based on vehicle, price and ETA using their smartphone.

History

Sidecar was founded in January 2012 by Sunil Paul, CEO, and Jahan Khanna, CTO. Beta testing began in San Francisco in February 2012; since then, more than 10,000 rides have been facilitated.[1]

The company rapidly expanded its operations into Seattle, Los Angeles, Philadelphia and Austin. During South By Southwest in 2013, Sidecar made all rides during the conference free, paying its drivers as brand ambassadors during the event.[2] In 2013 it also began serving Boston, Brooklyn, Washington, D.C., Charlotte, Chicago, San Diego, Long Beach and Oakland as well.[3]

Investments

In September 2014, Sidecar received $15 million in funding from current investors and new investor Sir Richard Branson.

Previously, the company raised $20 million worth of seed funding from numerous investors.[1][4]

Following an investment round from USV in August 2013, Sidecar pivoted to a new marketplace model in February of 2014. Whereas competitors rely on surge pricing to regulate supply, Sidecar drivers now set their own prices, while riders select the ride they want based on price, car ETA, and type/size of vehicle.

Legal challenges and approval in California

In the fall of 2012, the California Public Utilities Commission issued a cease and desist letter to Sidecar (along with rideshare companies Lyft and Uber) and fined each $20,000. However, in 2013 an interim agreement was reached reversing those actions.[5] In September 2013, the CPUC unanimously voted to make the agreement permanent, creating a new category of service called "Transportation Network Companies" to cover Lyft, UberX, and Sidecar, and making California the first state to recognize such services.[6]

In 2013 the Philadelphia Parking Authority carried out a sting operation against Sidecar, and shut it down as an "unauthorized service provider."[7] However, Sidecar has argued that its operation is not taxi service but "a way to organize ridesharing and carpooling."[8]

Sidecar Delivery launch

In February 2015, Sidecar announced a same-day service for local businesses that will deliver goods, food, and flowers to local consumers using its existing pool of drivers.[9]


See also

References

External links

Further reading