Collectivetech (t / a RideTandem) secures £ 1.75m investment led by 1818 Venture Capital – UK technology investment news

London, 3 May 2022 – Ride Tandema mobility-as-a-service startup providing affordable and reliable transport solutions for people affected by ‘transport poverty’, raised £ 1.75 million in initial funding. 1818 Venture capital led the tour, alongside Connecting the conduit, Low Carbon Innovation Fundseveral angels and former investors Ascension Day And Seeders. The investment follows two consecutive years of 10x growth for RideTandem – creating over £ 10m in new passenger revenue on its services since launch – and will support continued hiring, particularly in product management and engineering, while RideTandem builds its team.

Ride Tandem was founded in 2019 by Alex Shapland-Howes – formerly CEO of Education Charity Future first of all – with ex Global Fund for Innovation investment director Tatseng Call and ex Assumption CTO Huw McLeod. Collaborate with taxi, minicab and bus companies to provide commuter services to employers whose staff would otherwise not be able to work due to cost, inconvenience or the complete absence of existing public transport options. RideTandem operates outside of cities and towns, with its coverage currently strongest in the Midlands and East of England. Clients include Royal Mail, Primark, Transport for West Midlands, Direct Table Foods, Banham Poultry, and staffing agencies Manpower, Reed, First Call Contract Services and Everest People Solutions.

Shapland-Howes, Chiam and McLeod met through a venture builder program focused on impact Zinc, as part of a cohort examining ways to support communities left behind by globalization and automation. Explaining the genesis of the idea, co-founder and CEO Alex Shapland-Howes She said:

“We met some fathers in a small town outside Rochdale. Listening to their experience of transport poverty – they were looking for work, there were opportunities just 15 minutes away by car, but they couldn’t drive and there was no viable way to get there by public transport – was mind blowing. “

Reflecting on the UK government’s plan – part of its “Leveling Up” program – to bring the standard of public transport connectivity across the UK significantly closer to that of London, Shapland-Howes added:

“Many out-of-town jobs are only reliably accessible by car or taxi. Half of the 20% with the lowest earnings do not own a vehicle and cannot afford to travel by taxi, so rely on public transport. But since 2012, nearly 5,000 bus lines, more than one in four, have been eliminated and, outside of the larger cities and towns, the services that remain are often prohibitive, rare and unreliable, affecting job prospects and on the social mobility of people. Despite recent promises, we haven’t seen the government investment that would be needed to solve this problem across the country, so models like RideTandem can play a crucial role in the local transport mix. “

RideTandem recently achieved £ 10 million in new revenue created for passengers, with £ 6.5 million generated in 2021 alone. Revenues grew 10x for two consecutive years and the company achieved EBITDA profitability in fourth quarter of 2021. “It is satisfying to demonstrate that we have a sustainable business model that creates real benefits for all parties: passengers, employers and transport companies. Unlike many mobility startups, all the investments we receive go towards growing the business rather than subsidizing tariffs to maintain superficial profitability. ” She said Shapland-Howes.

That sustainable model relies on employers subsidizing fares as an investment to broaden their talent pool – some even cover the full cost, providing free transportation as a perk. Employers also take the risk of a route not breaking even, starting at £ 500 per route per month. Employers also get a real-time view of passenger numbers, providing timely warning of potential staffing problems.

Transportation providers, mostly independent local businesses, gain a new reliable revenue stream, with the result that many guarantee capacity. RideTandem has created a proprietary dispatch system, which includes driver and fleet management capabilities and an app for drivers, but also works flexibly with transport partners, developing bespoke integrations with their existing systems, to make working with RideTandem as easy as possible. RideTandem also provides customer service and support for digital ticketing, which many of the transportation partners are using for the first time.

Passengers use a mobile app designed to simplify bulk booking and provide flexibility on when payments are made – both features missing in most ride-hailing apps and other mobility apps, but critical for low-income workers . The app also includes real-time location for vehicle tracking.

RideTandem manages both seasonal and year-round journeys, connecting workers with jobs they otherwise wouldn’t have a viable way to reach. The average passenger travels 20 or more times a month, generating a higher and more consistent recurring frequency per rider than most ride-hailing apps.

Travel on RideTandem services currently creates an annualized CO2 offset of 1,000 tons compared to the same trips made by car. The average RideTandem vehicle carries more than 20 passengers – compared to 1.16 for the average commuter car – and operates with more than 70% capacity. Employers can also purchase carbon credits to offset the commuter emissions of their workers. This positive environmental impact indicates the applicability of the RideTandem model to a significantly larger addressable market as the company grows, Shapland-Howes explained:

“So far we have focused on ‘blue collar’ transport poverty – it is quite unusual for a VC-backed company to serve primarily low-income workers – and this will always be the focus of our business. But the opportunity to provide our services to a wider range of workers in different geographic areas, for whom environmental impact is a more important concern than price or affordability, prompting the more affluent workers they typically drive to work on shared alternatives, it’s huge. “

Mark Smith, partner of 1818 Venture Capital, said: “Transport poverty is one of the most underestimated social justice issues and the RideTandem team has made a major impact in such a short time using innovative technology. Having done this by building a completely self-sustainable business model and growing substantially even during the pandemic is even more impressive. We look forward to supporting RideTandem as they continue to grow the business and change lives across the UK and beyond.

RideTandem has now raised £ 2.6 million in total, including pre-seed investments from Ascension and Seedrs and grants from European space agency and the Department of Transportation.


About Ride Tandem

RideTandem is building the next generation of mobility outside of cities and towns. By working with local transportation companies, RideTandem offers high-quality, affordable, reliable and sustainable shared transportation solutions that connect people in transportation poverty with jobs they otherwise wouldn’t be able to get. Since its inception in 2019, RideTandem has created more than £ 10 million in new revenue for passengers, with employers using RideTandem including Royal Mail, Primark, Transport for West Midlands, Direct Table Foods, Banham Poultry and Personnel agencies Manpower, Reed, First Call Everest People’s contract services and solutions.

Founded by Alex Shapland-Howes – formerly CEO of the charity Future First – with former Global Innovation Fund investment director Tatseng Chiam and former Hireup CTO Huw McLeod, RideTandem is backed by investors including Zinc VC , Ascension Ventures, the European Space Agency, the Department for Transport, Seedrs, Conduit Connect, Low Carbon Innovation Fund and 1818 Venture Capital.
Bios co-founder

  • Alex Shapland-Howes, Co-Founder and CEO: After starting his career in teaching, Alex was the CEO of an educational charity – Future First – that works to improve social mobility by connecting state school pupils with successful pupils. Alex led Future First’s growth, reaching around 20% of all UK state schools and colleges. He then completed an MBA on a social entrepreneur scholarship and, inspired to build a business that combined profit and purpose, joined Zinc’s venture builder program. There he met co-founders Tatseng and Huw and was inspired by a meeting with fathers in Rochdale who were unemployed due to transport poverty. RideTandem was founded to ensure that transportation is never an obstacle to work.
  • Tatseng Chiam, co-founder and COO: Tatseng was investment director and sixth employee of the Global Innovation Fund, a social impact investment fund based in London, where he led multiple investments in sub-Saharan Africa and Asia. Previously, he was a consultant at Monitor Group.
  • Huw McLeod, co-founder and CTO: Huw was the CTO and first employee of Hireup, an Australian startup that enables people with disabilities to find, hire and manage their support workers. He was named the fastest growing Australian startup in 2017.

Angelic investors

  • Andy Young, former UK Country Head, Stripe
  • Beck Kloss, former Vice President of Product, Spotify
  • Catherine Lenson, Softbank Vision Fund’s first female partner, and Jonathan Lenson, CEO of Milltown Partners
  • Jonathan Petrides, founder and CEO of Allplants
  • Saasha Celestial-One, co-founder and COO, OIL

About 1818 Venture capital

1818 Venture Capital is a Guernsey-based investment firm investing in early stage and growth stage technology businesses in the UK. With a philosophy driven by forging close partnerships with portfolio companies and their outstanding management teams, 1818 aligns financial success with positive social outcomes to create value for all stakeholders. Founded in Guernsey in 2012 by Richard Avery-Wright, 1818 Venture Capital has developed a highly successful track record of investing in transformative companies that drive digital innovation or niche growth markets.

Digiqole announcement

Collectivetech (t / a RideTandem) secures £ 1.75m investment led by 1818 Venture Capital – UK technology investment news

Source link Collectivetech (t / a RideTandem) secures £ 1.75m investment led by 1818 Venture Capital – UK technology investment news

Back to top button