Shuttl a Gurgaon based bus aggregator backed by Venture Capitalist has cut down its certain routes and its 15 employees as part of a consolidation plan.
Shuttl initially raised a funding of $3 million in a seed round from an angel investors. In December 2015 it raised $20 Million from Sequoia Capital, Times Internet and Lightspeed Venture Partners.
A company’s spokesman said,
“We’re a product-centric company that looks to solve things by leveraging technology. Over the last few months we’ve automated most of the process which require human intervention on the field. This has led to some entry-level roles becoming less relevant. We’ve thus parted ways with 15-odd people and are providing them with all the requisite support for outplacement.”
The spokesperson further added
“We continue to hire for critical positions across the company and grow beyond Delhi-NCR and are looking at launching services in other cities soon. We have also undertaken a consolidation exercise under which certain routes have been rationalized to better address commuter demands.”
Shuttle currently operates in Delhi-NCR. It helps the passengers to connect with the buses on their routes. With their 500 bus fleet it completes 20k rides a day across 120 routes. In just 10 months of its operations it has provides more than 1 million rides in Delhi-NCR. It is further planning to expand its business in other cities as well.
Shuttle is in direct competition with Ola, as it launched its own shuttle service to expand into other other automobile segment and to compete with bus aggregator. ZipGo a Bangalore based bus aggregator service currently operating in Delhi-NCR and Jaipur. Since the Kerala Government has banned the company to operate in state of Karnataka, there is a heated war among the bus aggregator.
Another bus aggregator CityFlo based in Mumbai has raised around $750k from IDG Ventures a Venture capital firm. RideIT and Commut are trying to also expanding its services in other cities.