Tripda to Shut Down March 4
You must have seen those ads on Facebook by Tripda, well the company has announced that it will shut down its operation by March 4.
The major issue that Tripda faced was that of high operating cost. It was operating in 13 countries and it raised $11 million from investors including Rocket Internet. But it was nothing but a failure.
In it, Tripda notes that it has built out operations in 13 countries — several in South America, plus the U.S., plus India, Pakistan, Singapore and Taiwan — and had matched 1 million travellers to rides.
“And yet, despite the success of our community, our operating costs became too high, and we had to reassess our prospects,” the company writes in a note detailing the closure. “Given the inherent challenge of funding our operation as it continues to grow, we realized it was time to bring our ride to an end, discontinuing the Tripda platform as it is today.”
The startup is also likely a victim of a larger trend in funding today. While there is still money to be had for the very biggest startups or those growing like a weed, it seems investors are a lot more reluctant to put money into riskier bets.
“It seems like folks would rather hope for a 2X return with Uber versus 10X in something else,” is how one investor put it to me.
So what have you learned from this million-dollar failure?
I personally feel the target audience wasn’t right. At least Pakistan is not a country that’s one of the best for carpooling. Maybe, if they have launched this service in some of the European countries, they might have done well.