According to GlobalData, 46% of the 26 venture financing transactions for travel applications in 2021 involved ride-hailing, car rental and car rental companies. The leading data and analytics firm notes that this proportion shows renewed investor confidence as the pandemic eases, as well as their keen interest in technologically advanced companies that can offer multiple modes of transportation, which are also growing in demand.
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GlobalData's transaction database shows that the number of venture financing transactions involving travel and travel app apps increased by 183% year-on-year in 2021 as the 2020 pandemic weakened investor confidence, with car rental and ride-hailing apps driving a sharp increase in the frequency of deals.
Ralph Hollister, travel and travel analyst at GlobalData, commented: "Ride-sharing, ride-hailing and ride-hailing startups that will receive venture financing in 2021 share a common theme, namely operating innovative business models and using advanced technology forms integrated into their apps. Investors have seen these startups successfully respond to the pandemic, suggesting that many have resilient business models. ”
French startup BlaBlaCar raised a new $115 million round of funding in 2021. The company has more than 90 million members in 22 markets around the world who travel by carpool or coach.
Hollister also said: "BlaBlaCar's focus on carpooling and the sharing economy through its app has made the company an 'Airbnb' in the transportation market. It benefits from a highly unique type of supply unprecedented in the field, as car owners can share their long journeys with passengers who want to travel on the same route. ”
In addition, BlaBlaCar uses machine learning to maximize the success rate of its new drivers. It uses data collected from members to create personalized recommendations and recommendations, which it then pushes to drivers to increase engagement. This unique business model and use of advanced technology attracts many initial investors and consumers.
GlobalData's Q1 2021 Consumer Survey found that 43 percent of Gen Z and 41 percent of millennials are "often" or "always" influenced by how digitally advanced a product or service is. This suggests that these consumers will lead the way in demand for alternatives to transportation apps.
Hollister concluded: "The use of innovative business models and technologies will continue to create new entrants for the ride-sharing, ride-hailing and ride-hailing industries, further attracting financing from investors who are looking for the next Uber." ”
