Ride-hailing? Ride-sharing? These terms remain blurry for many travelers who are scurrying about to get from destination to destination. But On-demand ride-hailing startup Alto is making a big statement about the superior experience they provide, distinguishing themselves from ride sharing in which strangers share ride services and costs.
Alto’s innovative and disruptive ride hailing model began in 2018, being the first provider to manage its own fleet of vehicles and hiring only W-2 employees as drivers. Unlike early entrants Uber and Lyft that assign rides to freelancing gig-based drivers who own their own vehicles, Alto’s fleet provides a more consistent and quality ride that begins with in-depth training of their drivers without passenger ride and cost sharing.
“We are excited to have such strong support from investors who share our vision for revolutionizing the rideshare industry,” says Alto’s Founder and CEO, Will Coleman. “With this new funding, we’re on track to take Alto’s safe, consistent, and hospitable service across the country, and are set to become the world’s largest fully electric ride-hail fleet operator over the next two years.”
Alto’s maintenance of its luxury fleet includes daily service checks, deep cleaning procedures, and between-ride cleanings with EPA-registered disinfectants during COVID-19. With passenger safety paramount each vehicle has custom plexiglass barriers between the driver and passenger compartments and HEPA cabin air filters that provide higher air quality with the removal of 99.9% of airborne particles.
While currently available in only Dallas, Houston, and Los Angeles, their recent Series B financing $45 million puts Alto in the position to more than triple their geographic footprint.
“Tuesday Capital is proud to invest in the future of ride-hailing and transportation with Alto,” said Patrick Gallagher, Co-Founder and Managing Partner of Tuesday Capital. “Alto is changing the paradigm in ride-hailing — turning what was once a gig into a sophisticated, vertically integrated operating company capable of delivering a better experience and more value for customers, drivers, and local communities.”
The financing round, co-led by Goff Capital and Tuesday Capital, not only supports Alto’s expansion into other corners of the US but provides a platform for a future fleet of electric vehicles. This transition is expected to begin in early 2022, with an end goal of a 100% electric fleet totaling over 3,000 vehicles by 2023. Franklin Templeton, Alumni Ventures Group, Senterra, Green Park & Golf Ventures, and Hope Ventures Capital joined the round.
Read about a CyberSecurity Startup that had a Record Breaking Series A Funding Round
