SIDECAR: Small Startup With Big Ideas, a Leading Innovator in Ridesharing Technology

By Jaspreet Mann, J.D. Candidate 2016 | Posted on

Sidecar is the smallest of the ridesharing companies but this San Francisco-based startup has proven to have big ideas.

In this competitive space, Sidecar has managed to differentiate itself from Lyft and Uber. Earlier this year in February, Sidecar launched a ridesharing marketplace that affords its drivers more flexibility in pricing their rides while at the same time provides its passengers greater choice in the selection of drivers and cars for their rides. The user experience is no doubt much more personal. And best of all, riders can see the price of their ride upfront, so there are no surprises about the fare at the end of the ride.

The company yet again proved its innovativeness by rolling out Shared Rides in San Francisco last month. This feature allows passengers to get matched with other nearby passengers heading in the same direction. The passengers save money by sharing the car and the price while also sharing a fun conversation with a total stranger. Since its launch, the company has given more than 13,000 Shared Rides. Sidecar is looking to introduce Shared Rides in other cities with the goal of giving 500,000 Shared Rides in one year. To many, including USV’s Fred Wilson, Sidecar is a “true ridesharing service where others are a ‘new form of limo service powered through technology.’”

Recently, transportation leader and celebrity investor Sir Richard Branson put his money into Sidecar to build out Shared Rides and expand nationally. In this financing round, the company raised $15 million in funding. Existing investors included Avalon Ventures and Union Square Ventures. Sidecar previously raised $20 million through A and B rounds.

While Uber and Lyft’s price wars and aggressive recruiting attempts may create the impression that this is a “winner takes all market,” investors like Branson show confidence that there is room for innovators like Sidecar to “make a real difference in the market.” Instead of focusing on beating its competitors, Sidecar’s goal is to “carve out a segment of the market for itself through a unique approach.” Sidecar has shown a lot of potential in the early days of this business, and it has no plan to stop innovating, even as ridesharing faces legal threat from regulators.

SIDECAR- Small Startup With Big Ideas, a Leading Innovator in Ridesharing Technology (PDF)