RideScout built a pioneering multi-modal transportation app that showed all ways to get from A to B—walking, biking, public transit, car-sharing, ride-hailing, and taxis—in one unified interface. In 2013, this was novel. The app was well-designed and gained a loyal user base in Austin, Washington DC, and other US cities.
Company Data
- Founded: 2011 — Joseph Kopser
- Failed: Acquired by Daimler (2014), app killed
Daimler (Mercedes-Benz parent) acquired RideScout in 2014 to incorporate its technology into Daimler's mobility division (car2go, moovel). The consumer app was shut down, and the technology was absorbed into internal projects. Users who relied on RideScout were abandoned. The "exit" was financially successful for investors but a failure for the product's mission and users.
Key Lesson
Acqui-hires are good for investors and founders but bad for users who depend on your product. If your exit strategy is acquisition, be transparent that the product may not survive.