Passive Income News

With Every Ending, There is a New Beginning … Goodbye Shuddle

Goodbye Shuddle. Hello Zum; Hello Kango; & Hello HopSkipDrive!

Ride-hailing service for kids lives on.

“We believe in living more and driving less.”

This was how “Uber for kids” coined their brand’s tagline. Sad to say that after only two years of operation, the startup ceased operations.

In an open letter to its clients: “On behalf of the entire team here at Shuddle, we are saddened to inform you that Shuddle will cease operations and closing business at the end of the day Friday, April 15th. We worked hard to find the financial resources that would allow us to continue to grow, but ultimately could not raise the funding required to continue operations.”

What followed after was like Black Saturday for the rest of Shuddle and its partner-drivers. For ride-givers like McGlynn, a retired 911 dispatcher and single parent of three children, Shuddle had been an added source-provider.

One afternoon after taking a student home, she received the shocking alert on her mobile phone that Shuddle had shut down. Shocked was an understatement. “I didn’t see it coming.”

Thankfully, another ridesharing startup, Zum, reached out to McGlynn with a similar opportunity. Similar service but in a different backyard.

One may wonder, is it really the funding that shut Shuddle out or the market?

Other ride sharing startups are on the rise. Let’s take a look at three ride-hailing childcare services: Zum, Kango, and HopSkipDrive.

San Mateo-based Zum debuted mid 2015 in the Bay Area and recently raised $1.5M from investors. Zum was born out of a working mother’s need to be almost ubiquitous, especially for her child. Ritu Narayan had to do something and many other parents were in the same boat. So, she started Zum and functioned as CEO.

This on-demand service caters to children ages 5 to 15. Like Uber, the Zum app allows parents to hail a driver for their child. The app provides driver details: photo, background, tracking, and notification information. Parents are free to choose a suitable companion for their child.

Zum’s app also lists additional services along with a payment tool.

Learning of Shuddle’s demise, Narayan absorbed more than 100 Shuddle drivers and 600 customers. “It has really worked out,” she shared. Zum went the distance by providing additional services. More than delivering the children to their destination, Zum extends the service by offerng caregiving services when needed. If the parent is not available, the Zumers can stay with the child/children. “What we’re building is an on-demand trustworthy platform for family services,” Narayan explained. The services are tailored to the needs of the family.

To ensure familial bonding and trust, families are assigned no more than 6 drivers. Zum drivers pass stringent qualifications before being hired. The interview process is rigorous and background checks from Trustline, the U.S. Department of Justice and the FBI are required. A Zum employee must also have years of child care experience and a “clean driving record”. Insurance is provided both for riders and drivers. Now, out of its beta stage, the company is in six Bay Area counties: Alameda, Santa Clara, San Mateo, San Francisco, Contra Costa and Marin. Expect them to expand to Chicago, New York, Washington D.C. and 11 other cities in due time.

“It’s a concept whose time has come,” professed Zum user Lesley Matheson, who operates a commercial construction business with her husband. Her kids whose many after-school activities happen one after the other: swimming, trumpet lessons, tae kwon do — ages 7, 10 and 12 is a logistical plea for sanity. “I could end up spending five hours a day in the car,” she expressed. Nannies are becoming a thing of the past. For Lesley, she uses Zum 5-10 times a week, albeit additional child care. “It’s a great tool for a mom who has a career,” she said. “My kids know the handful of drivers for our area; they have their favorites and trust them.” Suffice it to say, Zumers are an extension of a mother’s love. No wonder, services like these are often founded and operated by moms who experienced a need for an extension of what may be dubbed as mommy moments.

Kango, on the other hand, functions and charges like Zum, but was born before Zum.  “It’s not as commoditized as the adult ride-sharing curbside-to-curbside experience,” said Sara Schaer, Kango CEO and co-founder. ‘There is room to specialize with unique features, customer care, and onboarding.’

Her company’s app premiered in 2012 to assist parents with carpools and babysitters. She offers this feature in other cities, a fertile ground for ride service expansion. Just think of a 21st century Mary Poppins for your children.

There is also HopSkipDrive, a Los Angeles-based ride service. Three professional working mothers addressed a need and started this ride-hailing service for kids. HopSkipDrive, made its way in Los Angeles and Orange Counties. With $14.1M funding and 30% monthly growth, HopSkipDrive is working hard to serve its clients well.

HopSkipDrive drivers are insured to drive children. In many respects, drivers share their lives with clients. Drivers, mostly women, who are teachers, nannies, daycare givers, and mothers themselves are allowed to bring their own children to work. Mommy referrals make such of a difference in these ventures. Word-of-mouth is tops here because credibility, trustworthiness, and personal-relationships. “We have discovered that when you solve one parent’s problem and make their lives easier, they will tell it to another.” Says Joanna McFarland, chief executive and co-founder of HopSkipDrive.

It appears that shortage of capital, blamed as the prime culprit for Shuddle’s shutdown, may not have been the
principal reason.

Tech women, especially moms, have carved out a niche in this startup industry. If Shuddle had been run by mothers,
where heart and mind connect to serve lives, would Shuddle have survived? They appear to be doing well at Zum, Kango, and HopSkipDrive…

As long as there are mothers need an extension of themselves to their children, ride-caring lives on.

Businesses that meet needs and solve problems, care as good mothers care, serve as good mothers serve, and love as good mothers love will never lack capital.


Additional Resources

Shuddle San Francisco

Shuddle Shuts Down

Uber For Failure: How Start Ups Crash and Burn

Zum Picks Up Customers

Uber for Children

Uber for Kids