Dallas-based ridesharing service Alto has finalized a $ 45 million Series B funding round, the largest to date, to continue to propel national growth and transform the industry. The capital injection will finance a major pivot for the local startup: Going electric.
Alto has been on a path of rapid expansion since its inception in 2018. It has joined the on-demand ride-hailing market with a different approach than giants like Uber and Lyft: Alto is rethinking the concert-based model as the first to hire its drivers as W-2 Employees. Today, Alto is more recognizable in its operating cities (Dallas, Houston and Los Angeles) by having its own luxury fleet of white label vehicles that carry customers.
Now Alto has more plans to shake up the industry. The team is in the process of upgrading this fleet to be fully electric by early next year, with the intention of having the country’s first fully electric vehicle fleet by the end. from 2023.
Alto said Dallas innovates that eventually, all of its existing vehicles will be replaced by electric vehicles, which represents more than 3,000 vehicles. The move, coupled with Alto’s commitment to clean and safe journeys, will provide a sustainable solution for cities that meets the growing demand for greener alternatives, according to the team.
“We are delighted to have such strong support from investors who share our vision to revolutionize the ridesharing industry,” said Will Coleman, founder and CEO of Alto, in a statement. âWith this new funding, we are on track to deliver safe, consistent and hospitable Alto service across the country, and we are poised to become the world’s largest fully electric ride-hailing operator over the course of the year. over the next two years. â
Series B was co-directed by Tuesday Capital and Goff Capital. New investors included Franklin Templeton, Alumni Ventures Group, Senterra, Green Park & ââGolf Ventures and Hope Ventures Capital.
The new round brings Alto’s total raised capital to $ 60 million.
âTuesday Capital is proud to invest in the future of carpooling and transportation with Alto,â said Patrick Gallagher, co-founder and managing partner of Tuesday Capital, in a statement. âAlto is changing the ridesharing paradigm by transforming what was once a gig into a sophisticated, vertically integrated operating company capable of delivering a better experience and more value to customers, drivers and local communities.
In September, Alto made its first expansion outside of its Dallas home port on its way to Houston. Los Angeles followed soon after.
But the new funding will more than triple Alto’s geographic footprint, according to the team. They say that by the end of this year, Alto will be a brand from coast to coast, continuing a strong growth rate for the young startup.
The team attributes its success to its unique business strategy. The Alto app acts as a âremoteâ for passengers, allowing them to set âthe moodâ with music, conversation and lighting preferences.
In addition to the fact that every driver is a W-2 employee, all are rigorously checked, trained and supervised by the management of the company. Additionally, vehicles undergo daily maintenance checks, deep cleaning procedures, and between-trip cleanings with disinfectants registered by the EPA.
This is to ensure that Alto continues to âset the standard for safety, cleanliness and qualityâ.
Alto’s commitment to cleanliness was only strengthened during the COVID-19 pandemic. Each vehicle is now equipped with custom plexiglass barriers and a HEPA cabin air filter which it says removes 99.9% of airborne particles. Interiors are treated with an EPA-registered disinfectant mist called PermaSafe, which Alto says kills 99.9% of bacteria and viruses like COVID-19.
âCustomers have a new level of expectation when it comes to cleanliness and safety and expect a new level of confidence,â the team told us. âThey need to be confident that transportation providers will protect them and keep them safe on a whole new level. Alto’s unique business model and the control it exercises over its fleet and drivers allow the brand to build that trust and keep its promises of safety and cleanliness. And that’s the priority from day one.
Alto has also taken a series of measures throughout the pandemic to keep business flowing.
When most of them were stuck inside, Alto started their own on-demand delivery service to help Dallas-Fort Worth businesses and consumers. The Alto Drivers shopped, bought and delivered same day from local brands like Whiskey Cake, Commissary and Gardenuity.
The market, a digital storefront created by Alto, offers on-demand delivery service options (essentials, meals and ready-to-cook items) from establishments in the region.
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