Ride is over for Hub on-demand shuttle service
Boston startup Bridj, an on-demand shuttle service, abruptly announced it is closing after three years in business after a planned transaction with a car company fell through.
“Today, our journey unexpectedly ends,” CEO Matt George announced in a statement posted last night to the Bridj website. The company’s last ride was Friday.
Headquartered on Newbury Street, the company said it was expecting to close a deal with “a major car company” for “a sizable transaction” in lieu of a traditional venture capital funding round, but the deal never came to fruition.
“We unfortunately can’t disclose specific deal terms or the particular company, but it would have valued Bridj at close to $100 million,” George told the Herald last night.
The Bridj statement said the unnamed car company “sought to gain the appropriate internal approvals that we (and they) thought were already in place. Throughout, we remained convinced of the close strategic fit and both sides had every expectation that the transaction would close. Despite assurances, and all parties acting in the best of faith, that didn’t happen.”
George added that “letting pride and hope continue to push us forward in this situation would create an unacceptable level of risk for employees, investors, and customers.”
Bridj, which sought to become the Uber of shuttle service but offer drivers better pay and benefits, had 50 employees, about a third of whom were drivers.
George said his “primary focus over the next few weeks is getting those folks (especially our drivers) into other jobs here in Boston.”
Bridj, which started with $3 million in venture capital backing, was built around technology that designed bus routes based on an analysis of demand, and partnered with licensed coach bus vendors for pickups.
“While we have been one small part of starting the conversation around mobility in the modern city, we hope that you will continue to support innovators and leaders who will pick up where we left off, delivering on the promise of what cities can and should be,” George said in the company statement.
Bridj began charging for its service in Boston during the summer of 2014 after a six-week pilot run and receiving a state charter.