Ridesharing App HopSkipDrive Announces Layoffs

HopSkipDrive, the ridesharing company for kids and one of Los Angeles' most visible startups, laid off staff Tuesday as the pandemic ravaged growth plans.

Co-founder and CEO Joanna McFarland would not say how many of the 100-plus employees she laid off but told dot.LA that after delivering the news to the group affected over Zoom, managers held one-on-one meetings to review benefits and severance pay. Several departments were impacted including operations, branding, sales and customer support.

The latest round of layoffs follow an earlier one in March in which the company cut 10 percent of its staff, according to layoffs.fyi, a website tracking job loss.

"One of HopSkipDrive's core values is 'feel it', meaning empathy," McFarland said. "It was very important to us to show empathy to all employees and to communicate directly with both employees who were impacted and those that were not impacted."

The six-year old company, that's raised roughly $98 million, spent the summer building COVID-safe standards to prepare for an abnormal school year. Then, one after the other, school districts across the country changed plans from in-person or hybrid classes to a completely virtual curriculum.

"Schools closing has a direct and significant impact on our business," McFarland told dot.LA by email.

"These reductions are not in any way reflective of work performance but were unfortunately necessary due to the impact COVID-19 has had on our business, like many others," McFarland wrote on LinkedIn in announcing the decision.

Companies have been careful about letting go of workers remotely after startups like the e-scooter service Bird soured relationships with former employees after a poorly planned layoff round.

McFarland said that demand for this service will surge once schools reopen because it offers socially-distanced, safe transportation for schools looking to limit bus capacity.

"Schools will need to prioritize the students we primarily serve more than ever — students with special needs, students experiencing homelessness and students in the foster care system," she said. "These are the students who are likely to have the biggest learning gaps due to Covid."

LAUSD begins its entirely virtual school year on August 18.

"Schools will come back, and when they do, we are poised to take off. We will be in a position to create more opportunities for kids, for CareDrivers, for families and for our team than ever before."

Until that happens, McFarland says the company will continue operations with its partners in markets that have opened schools. It'll also support seniors with mobility needs and partners looking to use the service to fulfill meal and technology deliveries.

McFarland and two other L.A. working moms founded HopSkipDrive in 2014 to help parents juggling hectic schedules. Unlike rideshare companies that bar underage riders, HopSkipDrive was designed for children as young as six.

In February, HopSkipDrive announced a $22 million funding round to expand its operations in new cities, dot.LA reported. Months before, in November of 2019, the company relocated its office to ROW DTLA and began a sizable hiring push across departments.

The service, now offered in 14 markets across eight states and Washington D.C., is expanding to Midland, Texas this coming school year to support Midland Independent School District.