On-Demand Delivery Startups Failed to Run an Uber Clone

On-Demand Delivery Startups failure

Is ‘Uber for Kids’ or ‘Uber for Meals’ failed to figure out the ways to raise funds?

One more Uber-like startup, Shuddle is shutting down. Shuddle is the Uber like service offering safe rides for kids. Shuddle focuses on safety and thus, they make background checks on drivers, monitored them to make sure that they stayed on route. Shuddle also checks that drivers didn’t ride in over-speed or text while driving. It offers real-time ride tracking to parents. Drivers could also be authorized to check your kids out after school activities that most of other service’s drivers would be weirded out by.

Another on-demand startup, who fails to raise the necessary capital to continue operations is SpoonRocket, who was selling meals for more than it cost to prepare, package, and deliver them. SpoonRocket had reached a positive contribution margin, however, due to other costs and the frosty fundraising climate, it wasn’t able to get the money it required to continue operating.

SpoonRocket found a quick-service restaurant chain to obtain it, however, the deal was abandoned the by the acquirer by leaving SpoonRocket to shut off permanently.

Why an Uber for X startups failed in their Initial Days?

Not Concentrating in One Task, Putting Hands Everywhere

Exec works to provide errand runners to do any kind of random jobs. This made them hire errand runners for various skills that proved to be costly at the end. Additionally, the demand for the service was spiky and the utmost transaction took place on the weekends. This company focuses on niche jobs before expanding to serve other jobs. It’s unit economics gone wrong and thus, in January 2014, it acquired by HandyBook.

Finding Problem in acquiring new customers and Co-founder left the startup without informing

99Dresses was the great platform for trading, purchasing and selling rarely-used articles of clothing for the small fee. However, the company failed, as they find difficulty to acquire new customers. And, Suddenly, their co-founders bailed out from the company.

Having High customer acquisition costs

Rivet and Sway offer stylish and fashionable eyeglasses for women. Customer acquisition costs play an important role in deciding how much each customer’s LTV is going to be and it costs the higher. Moreover, Rivet & Sway raised more than $3 million in funding and face serious competition from the heavily-funded Warby Parker. Ultimately, the company was shut down.

Using Single channel to gain new customers

Tutorspree provides tutors on different subjects to the students or the people, who needed. It acts as the medium between tutors and students. However, Tutorspree fails, as they depend on the single channel to acquire new customers.

Very few Customers made booking after Using Initial Promotion Offer & Expanded to other markets too Fast

Homejoy was a home-cleaning marketplace company, offering cleaning service through independent contractors. This company relied on deal websites like Groupon to increase their customer base. However, they only got very few customers made another booking after the initial promotion offer had been used.

In 2013, a funding of $38 million was received for expansion and Homejoy expanded quickly by opening their service in 30 cities in 6 months. “Premature scaling” is killing startups and it couldn’t retain their customers.

Not Able to Search Product Market Fit

HelloParking allows people to share parking spaces with other people. This startup fails as the co-founders never defined clear hypotheses, and also developed experiments. It rarely had a meaningful conversation with target end-users.

Transferred the Business model from Bidding to On-Demand

TaskRabbit is an online and mobile marketplace where users can outsource small jobs and tasks to others. The problem with the company is it was not being efficient in matching supply and demand effectively.
Now, TaskRabbit has changed their model – users have to post the task and wait, to a model to book and confirm instantaneously. Under the transparent pricing and review based system, customers have to match to Taskers. This new model was created to expand the model to the market where TaskRabbit is already set-up.

Are these listed companies shaded light on how to create the next Uber for X without Being Failed?

You might not be interested to make mistakes like some companies did. Creating a successful startup requires expert advice and in-depth research. Get in touch today to know more about how you can shape your business to a guaranteed success.

No doubt, Uber for X is grabbing attention among the startups and also attempting to disrupt industry value chains across different verticals. Along with enterprises, entrepreneurs are also competing to develop successful platforms. However, not all platforms that created for Uber for X model are successful.

If you want to make your Uber for X successful, here are some factors you should implement to get a success in Uber clone or Uber type of app development.

Make sure your startup should solve an unmet requirement for customers. Your startup should deal with multi-sided customer segments with buyers and suppliers.

  • Predict the unit economics in the beginning by analysis every transaction roughly before hitting the critical mass.
  • Provide convenience to your users to lead to the high retention rates.
  • Reach to the critical mass to make sure the reliability and efficiency. This is must for those businesses, who are going to work with multi-sided platforms.
  • Make the right design of the business model to make itself unique from other competitors.
  • Start off with the smaller initial target market and expand it to other use cases. Discriminate Total initial target market and Total Addressable Market size.
  • Gain domain knowledge to understand your audience and ask the right questions to them.

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