Los Angeles SuperShuttle To Shut Down

Supershuttle- kennejima
Supershuttle- kennejima

LOS ANGELES (CNS) – SuperShuttle, the shared van ride that has served passengers heading to and from airports around the world, including Los Angeles International Airport, will cease operations at the end of the year, it was reported today.

The company, which was founded in 1983 to serve LAX and expanded nationwide as well as to Latin America, Canada, Europe, and Asia, has been plagued by competition from Uber and Lyft, the Los Angeles Times reported. In recent weeks it has pulled out of airports serving many cities, including Burbank, Sacramento, Phoenix, Baltimore, and Minneapolis.
  
A letter Tuesday from the company to a Los Angeles-area franchisee, obtained by The Times, says: “SuperShuttle plans to honor all reservations and
walk-up requests for service” through Dec. 31.

SuperShuttle executives could not be reached for official comment. But two SuperShuttle reservations agents reached by telephone confirmed that the company was going out of business, as did a company executive who was not authorized to speak publicly.

SuperShuttle is one of the few services that can still pick up riders curbside at LAX after the airport’s recent changes to help ease congestion. In November, Lyft, Uber and taxis were relegated to a pickup lot next to Terminal 1; travelers can either walk there or wait for an airport shuttle to ferry them.
  
But shared van services such as SuperShuttle have been hit hard since the advent of ride-hailing services. At LAX, shared van rides plunged by two-thirds in the first half of this year compared with the first half of 2016, the first full year that Uber and Lyft operated there, according to city data cited by The Times. Trips on LAX‘s FlyAway buses also sank by two-thirds during that time; taxi trips fell 39%; and courtesy shuttles to car rental facilities,
parking lots and hotels saw a 20% decline. The number of Uber and Lyft trips, meanwhile, more than doubled.

The letter to the franchisee cited “a variety of factors” for the company’s closure, “including increasing costs and changes in the competitive and regulatory landscape” that “have called into question the economic and operational viability of the company’s operations.”
  
The shutdown will leave franchisees in the lurch — hundreds of them in California alone.
  
Signs of the company’s shakiness appeared shortly before the Thanksgiving holidays, when SuperShuttle suspended its operations at LAX because of an issue with insurance. The California Public Utilities Commission said the service was out of compliance with state regulations. The issue was resolved Nov. 21.
  
SuperShuttle is owned by an affiliate of Blackstreet Capital Holdings, a private investment firm in Bethesda, Maryland, court documents show.

Blackstreet describes itself as specializing in acquiring small or midsize companies “that are in out-of-favor industries or are undergoing some form of transition.*

Blackstreet acquired SuperShuttle in September from Transdev on Demand Inc., which is part of the Transdev Group of France, according to a lawsuit Transdev filed against Blackstreet this month in Delaware Chancery Court in a dispute over some terms of the transaction.

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