Startup Basics

Why Auto Raja Had to Shutdown

Thousands of startups in the fields of agriculture, education, technology, e-commerce, food etc are launched by entrepreneurs on a yearly basis alone in our beloved country India. While less number of those thousands meet success, most for one reason or another face failure.

Today, we’ll take you inside the reasons that forced Auto Raja shut down its operations. Let’s get started…

Auto Raja was a Chennai based auto rickshaw service providing startup founded in 2013 by the two hardworking youth namely Anuraj and Aishwarya Raman. The idea to launch Auto Raja, as told by its founders Aishwarya and Anuraj, was to help people hire auto-rickshaws at the convenience through SMS, call, Whatsapp and also via the mobile application of the company.

The future of Auto Raja looked promising during its early months of operation. No one that time would have thought that the Auto Raja will in a short period of time ( 3 years ) find space in the list of failed startups. Anyway, when misfortune hounds you, you can’t avoid the result that you never wanted to face in your life.

When Anuraj was contacted and asked what made him and Aishwarya bring down the curtain of Auto Raja, he cited two common reasons – lack of funds and severe market competition. From his response, it looked that the founders had not only miscalculated the actual requirement of funds but also had not come up with a solid competitive strategy.

Auto Raja lacked funds required to keep everything working normally. When you don’t have a backup to meet your expenditures and especially when there no one to support you when you require it, you aren’t left with any choice other than saying goodbye to your business.

The other important reason Anurag cited was that our company that time wasn’t able to survive the tough market competition. If we had come up with a strategy to counter the stiffer competition, most likely our results would have been different, added Anuraj. When the situation of our startup started to become worse, we eventually in the month of January 2016, took the bold decision of shutting down services.

Both Anuraj and Aishwarya, soon, after the fall of their startup Auto Raja, joined Ola Cabs and still continue to work in the company.

Leave a Reply

Your email address will not be published. Required fields are marked *