Fluid Truck, a startup that aimed to change the commercial vehicle rental industry, has removed its sibling co-founders – CEO James Eberhard and chief legal counsel Jenifer Snyder – according to sources. The shakeup, seen as a hostile takeover by employees, was carried out by two minority investors on the board. Eberhard and Snyder still have their own board seats.
The company lost a lot of money by June 31, leaving vendors and fleet owners unpaid. Despite several rounds of cost-cutting measures in 2023, the financial situation didn’t improve.
Minority shareholders Bison Capital and Ingka Investments accused Eberhard of mishandling funds and causing significant losses. Employees believe these investors may not have the best interests of the company in mind.
Scott Avila has replaced Eberhard as the temporary CEO. This change has created a tense atmosphere at Fluid Truck, shifting from a relaxed environment to a more professional one.
The interim CEO is now in charge during the busiest time of the year for the startup. Eberhard and Snyder were asked for comment, but Eberhard directed questions to the company’s press contact, and Snyder could not be reached.
Fluid Truck confirmed that Avila is the interim CEO but declined to provide more details. The company stated that they are working to overcome their challenges and ensure the company’s stability.
Bison Capital and Ingka did not address specific questions but denied the claims made by TechCrunch.
When Fluid Truck started in 2016, it received investments and attention for its innovative approach. However, missteps and mismanagement have left many asset owners with unpaid bills.
The tension between Eberhard and investors Bison and Ingka led to a power struggle, resulting in Eberhard’s departure. Despite some financial success, investors wanted a change in management due to ongoing liquidity issues.
Fluid Truck faced financial troubles despite expanding its operations. Eberhard turned down a financing offer from investors and was subsequently removed from his position.
The company’s future remains uncertain, with new management and ongoing financial challenges.
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