Sidecar (company)

From Wikipedia, the free encyclopedia

Sidecar was a US-based vehicle for hire company that provided transportation and delivery services. It was founded in 2011 in San Francisco and closed on December 31, 2015.[1]


Sidecar was founded in September 2011 by Sunil Paul, CEO, Jahan Khanna, CTO, and Adrian Fortino.[2] The company expanded its operations into Seattle, Los Angeles, Philadelphia and Austin. At the South By Southwest festival in 2013, Sidecar made all rides during the conference free.[3] In 2013 the company started operating in Boston, New York City, Washington, D.C., Charlotte, Chicago, San Diego, Long Beach and Oakland.[4]


Sidecar was backed by a number of wealthy investors including Union Square Ventures, Avalon Ventures, Lightspeed Venture Partners, Google Ventures, and Sir Richard Branson. The company raised US$10 million in series A funding from Google Ventures and Lightspeed Venture Partners in 2012.[5][6]

Legal challenges and approval in California[edit]

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.[7] In September 2013, the CPUC unanimously voted to make the agreement permanent, creating a new category of service called "transportation network company" to cover Lyft, UberX, and Sidecar, and making California the first state to recognize such services.[8]

In 2013 the Philadelphia Parking Authority carried out a sting operation against Sidecar and shut it down as an "unauthorized service provider."[9] However, Sidecar argued that its operation is not taxi service but "a way to organize ridesharing and carpooling."[10]

Repositioning, shutdown[edit]

In February 2015, Sidecar announced a same-day service for local businesses whereby goods, food, and flowers were to be delivered to local consumers using its existing pool of drivers. Sidecar also announced its partnership with Yelp Eat24.[11] By August 2015, most of Sidecar's business entailed making deliveries.[12]

On December 29, 2015, Sidecar announced that it would shut down. On January 19, 2016, automaker General Motors acquired Sidecar's assets and intellectual property, and hired Khanna and 20 other employees. The purchase was a follow-up to GM's $500 million investment in Lyft.[13]


  1. ^ Nicks, Denver (December 29, 2015). "Sidecar Runs Out of Gas". Archived from the original on December 30, 2015. Retrieved 29 December 2015.
  2. ^ "Sidecar Connects Drivers and Passengers One Ride at a Time". Yahoo Finance. Retrieved 2012-06-26.
  3. ^ "The SXSW Transportation Wars Are On, As Uber And SideCar Launch Free Ride Sharing In Austin". TechCrunch. 7 March 2013. Retrieved 17 December 2015.
  4. ^ "Ride-Sharing Service SideCar Expands to Boston, Brooklyn and Chicago - Liz Gannes - News - AllThingsD". AllThingsD. Retrieved 17 December 2015.
  5. ^ Geron, Tomio (10 October 2012). "Sidecar Raises $10 Million From Google Ventures, Lightspeed - Forbes". Forbes. Retrieved 17 December 2015.
  6. ^ Yuliya Chernova (2014-09-15). "Facing Big Ride-Sharing Competitors, Sidecar Enlists Richard Branson". Wall Street Journal. Retrieved 17 December 2015.
  7. ^ Lawler, Ryan (31 Jan 2013). "A Day After Cutting A Deal With Lyft, California Regulator Reaches An Agreement With Uber As Well". TechCrunch. Retrieved 17 July 2013.
  8. ^ Geron, Tomio (9 Sep 2013). "California Becomes First State To Regulate Ridesharing Services Lyft, Sidecar, UberX". Forbes. Retrieved 23 Oct 2013.
  9. ^ "SideCar Says Three Philadelphia Drivers Caught In 'Sting,' But It Plans To Continue Operations". TechCrunch. 25 February 2013. Retrieved 17 December 2015.
  10. ^ Kevin McCorry and Zack Seward (7 March 2013). "Inside the Philadelphia Parking Authority's feud with SideCar". Retrieved 17 December 2015.
  11. ^ "Sidecar expands service to deliver packages as well as people". SFGate. 9 February 2015. Retrieved 17 December 2015.
  12. ^ "Sidecar Puts Passengers Aside, Pivots To A Mostly-Deliveries Company". Forbes. 5 August 2015. Retrieved 17 December 2015.
  13. ^ "General Motors Salvages Ride-Hailing Company Sidecar for Parts". Bloomberg. Retrieved 19 January 2016.