While visiting a new place, it can be difficult to find safe and reliable ways to get around town. This is where London-based startup Zeelo comes in. The company offers shared transportation services that can be booked via an app.
Zeelo raises Series A funding
In a recent development, the bus commuting platform announced that it has raised $12M (approx €10.13M) in its Series A round of funding.
The development follows Zeelo’s 600 per cent revenue growth over the past 18-months, reaching regional profitability. The company witnessed such growth by supporting companies in logistics and manufacturing sectors, as well as from post-pandemic hybrid workplaces and schools. It enabled access for people in car-dependent areas to reach work and education by sustainable transportation.
Investors in this round
The round was led by ETF Partners, with participation from InMotion Ventures, as well as various angel investors, including Neil Smith, Founder of Transit Systems.
Patrick Sheehan, Managing Partner at ETF Partners, says, “Zeelo’s focus on public transport deserts directly tackles the issues of car-dependency, transport emissions, and social mobility. The growth of the business during the pandemic has been extraordinary.”
Use of the funds
The proceeds from this round will help Zeelo to accelerate its expansion in the US, Europe, and Africa. Additionally, the funds will also help the company in rolling out its technology platform as a SaaS solution to fleet operator partners and encouraging the transition to zero-emission buses and coaches.
“Smart bus services for commuting and school runs”
Founded in 2016 by serial mobility entrepreneurs Sam Ryan and Barney Williams, Zeelo is a smart bus platform for organisations, on a mission to enable access to safe and sustainable transportation for everyday journeys.
The company works with organisations, schools, and fleet operators to deliver bus programmes that provide alternatives to driving a car, in order to support staff recruitment and to reduce CO2 emissions from commuting. Currently, the services are operational in the UK, US, and South Africa, serving over 70 customers with over 75 employees, and moving nearly 100,000 riders each month.
According to the company, as compared to traditional bus operators, Zeelo’s apps helps reduce cost of upto 42 per cent in areas such as workforce planning tools, route-optimisation software, and asset-light vehicle model. In addition, the company also helps reduce CO2 emissions by 78 per cent – meaning 30 cars being taken off the road for every trip.
Speaking on the company’s growth, Sam Ryan, co-founder & CEO of Zeelo, says, “Outside urban centres, the vast majority of people need a car to access work and education. Amongst our shift-worker customers, 30 per cent of candidates don’t turn up to the job interview in the first place because they can’t get there. Zeelo is playing an important role in improving social mobility and decarbonising transportation. In the past 18 months, employers have realised the importance of it too. Now it’s time to bring this to the masses.”
Some of Zeelo’s customers include Ocado, Amazon, and Wincanton.
