GoMyWay is an inter-city ridesharing service that took off in 2015 with the financial backing of CcHub, Sim Shagaya, and ex-Amazon executive, Bill Paladino. It ran on a very simple concept: connect drivers and passengers going the same way. This helps riders travel conveniently and at minimum cost. This also helps drivers cover some of the costs of their trips.
In June this year, GoMyWay was reported as having recorded a 150% increase in registered members and a 300% increase in the number of seats offered year on year.
GoMyWay To Go Away
Out of the blues, in an email to subscribers in September 2017, the startup’s CEO said that the service would shut down by end of October.
GoMyWay says it grew “from less than 1,000 members in the first few months to 12,000+ members; 106,630 rides offered and rides shared across 16 states”. Impressive figures.
Road Blocks and Bad Roads
According to the startup’s founder, GoMyWay’s plan was to keep the service free for a year or two, while growing the user-base”. GoMyWay turned two in June 2017. It appears that the startup was unable to prove viable within those two years.
The business model that GoMyWay runs is a tough one, with very narrow margins. While the figures of user growth were impressive, the question is always, “At what cost were those users acquired and services sustained?”
The September shutdown email answered that critical question:
“…it does take a lot of resources to run this business and the initial plan was no longer sustainable. The shareholders/investors came to the conclusion to shut down operations and close the business as there were no funds to invest further.”
The ridesharing service is no longer taking on new signups but says it will keep running until the end of October. GoMyWay hasn’t gone away yet. Perhaps an intervention and rejig of the service may yet happen before the end of October. If it doesn’t, then it is the highway.