SuperShuttle Closing Down 12/31/19?

[KeepCalmBearOn]

KRON Channel 4 San Francisco is reporting that 12/31/19 will be the last day of business for SuperShuttle.

 

Airport transport company SuperShuttle closing down at the end of the year

 

The very brief blub says in part, "The reason behind the shutdown is unknown, but Dec. 31 will be the final day of transport for SuperShuttle and its customers nationwide."

[KeepCalmBearOn]

A few more details in the LA Times story.

 

SuperShuttle is going out of business. Its last rides are Dec. 31

[Bruin Steve]

Wow!  I know that Uber has cut into their business....BUT Uber just took a hit with the new off-airport pick-up thing.

 

I, for one, used to use shuttles but transitioned to Uber’s...But...I’ve also used shuttles when hit with high “surge” pricing..and, now, with the new Uber pick-up set-up, for example, with my trip next week—with a flight returning at midnight, I am seriously considering a shared shuttle rather than having to take a shuttle to a pick-up lot to wait for an Uber that late into the night.

 

It will be interesting to see how all of this shakes out.  Can the others—PrimeTime, RoadRunner, Karelia, etc., for example, be able to hang on...and get the benefit of SuperShuttle’s former share?  Will everyone’s (including Uber’s and Lyft’s) prices go up because of less competition?  Will the other shuttle companies pick up drivers/vans from the former SuperShuttle people?  Will someone band a bunch of former SuperShuttle drivers/vans together under a new banner with a new website so they don’t all find themselves suddenly unemployed with unpaid-for vans?

[Keith1010]

I just want to note that the same applies to Execucar.  At this point they are closing the end of the year.

 

Who knows.  Maybe there will be a last minute purchase of them.

 

Keith

[princeton123211]

9 hours ago, Bruin Steve said:

It will be interesting to see how all of this shakes out.  Can the others—PrimeTime, RoadRunner, Karelia, etc., for example, be able to hang on...and get the benefit of SuperShuttle’s former share?

I think you'll see some consolidation. I'm admittedly not a shuttle guy, but out of all of them SuperShuttle was the one I thought had the most brand recognition and I see them all the time when I'm at LAX or around greater LA. Maybe they just had the highest overhead due to their larger size. 

 

9 hours ago, Bruin Steve said:

Will everyone’s (including Uber’s and Lyft’s) prices go up because of less competition?

I don't think theres a ton of pricing elasticity in either model-- only so much someone will pay whether its a shared shuttle or an Uber/Lyft. For 1-2 passengers the shuttles value proposition is pick up convenience now that ride shares are in a satellite. Its possible you'll see the shuttle prices go up a little bit to cover their losses (as opposed to lower them and go out of business like SuperShuttle) which will diminish the value of convenience and put more people into the waiting arms of ride share. 

 

9 hours ago, Bruin Steve said:

Will the other shuttle companies pick up drivers/vans from the former SuperShuttle people?  Will someone band a bunch of former SuperShuttle drivers/vans together under a new banner with a new website so they don’t all find themselves suddenly unemployed with unpaid-for vans?

Doubtful-- if an organized, and at least once well capitalized company like SuperShuttle couldn't make it work, why would these drivers be able to make it on their own? Quite possible you'll see them do the easiest thing that an individual owner/driver can do-- go drive for Uber/Lyft. Also possible they'll end up with some of the smaller shuttle players, but SuperShuttle's demise clearly indicates that demand is significantly down so that might not be an option. 

[Bruin Steve]

1 hour ago, princeton123211 said:

Doubtful-- if an organized, and at least once well capitalized company like SuperShuttle couldn't make it work, why would these drivers be able to make it on their own?

 

Here's the reasoning behind that thought:  SuperShuttle had become national--even international.  At most airports, they had zero advantage over Uber...BUT, at LAX, with the new offsite pick-up situation, shuttles DO have at least one advantage--the ability to pick up right at the terminal.  So, my thought there is that, if a number of now-former Super Shuttle drivers--independent contractors who own their own vans--wanted to band together, create their own website and contract for some phone lines, then, without much further investment than that, they could , basically, for a new shuttle company of sorts and continue to operate in a limited area, mainly for rides to and from LAX.  Heck, if I was a former SuperShuttle driver and had a van to pay off with no job as of New Years, I'd probably paint my own name over "SuperShuttle" on my van and drive down to the pier in San Pedro early in the morning when a ship comes in and offer rides to LAX on my own...

[princeton123211]

3 minutes ago, Bruin Steve said:

Heck, if I was a former SuperShuttle driver and had a van to pay off with no job as of New Years, I'd probably paint my own name over "SuperShuttle" on my van and drive down to the pier in San Pedro early in the morning when a ship comes in and offer rides to LAX on my own...

I mean I get what you're saying but without advertising/booking mechanism you'd be at a major disadvantage not just to the ride share platforms but to the other established shuttle companies that remain in the market, and it sounded like there were a couple. But even if you did just show up, wouldn't you need to be licensed to run a shuttle in LA? (Not a rhetorical question-- I don't personally know the licensing requirements in LA). 

[Bruin Steve]

31 minutes ago, princeton123211 said:

...wouldn't you need to be licensed to run a shuttle in LA? (Not a rhetorical question-- I don't personally know the licensing requirements in LA). 

 

Yeah...there are a few hurdles.  LAX requires you provide a California Public Utilities Commission Permit and a Los Angeles Business Tax Registration Certificate (along with some optional documentation--like proof of insurance, and vehicle registration) and pay an annual $150 fee for the permit.

 

The CA PUC Class "A" permit has a $1500 filing fee and some other requirements--inspection, drug testing, etc.

 

...So, yes, it's not quite as simple as "just showing up"...but, it doesn't really take an overwhelming amount of capital or an unwieldy amount of paperwork.

[Keith1010]

I did confirm Execucar is ceasing operations as well unless some user comes in.

 

Just as Amazon has changed things Uber has done as well.

 

BruinSteve the same is true for most airports.

 

For example at DFW if you want to offer a service like Execucar you have to drive certain vehicles and go through a big process to get approved and fork over a lot of money.  On the other hand you don't to drive for Uber.

 

The model is not supporting traditional services.

 

Even where we live I know many people who drive on their own and publicize internally.

 

Keith

[TNcruising02]

That's too bad about Execucar.  Their service is really good.

[KeepCalmBearOn]

10 hours ago, Bruin Steve said:

Heck, if I was a former SuperShuttle driver and had a van to pay off with no job as of New Years, I'd probably paint my own name over "SuperShuttle" on my van and drive down to the pier in San Pedro early in the morning when a ship comes in and offer rides to LAX on my own...

 

If I was a former SuperShuttle driver and had a van to pay off with no job as of New Years, I'd probably paint my van black and become Uber Black, or XL and Lyft Lux Black.

[Keith1010]

In my home city we just learned that the existing super shuttle/execucar franchise is being rebranded so it will continue to operate but under a new name.

 

Keith