Cabify scores funding deal to expand mobility business
Cabify has raised funding of $110 million and says this will help the mobility company increase its market share in its operating countries. Cabify also aims to expand to more than 25 cities in Latin America and Spain and to enter the logistics market.
While the ride-hailing and rental company does not specify the cities, Cabify targets cities with more than 200,000 inhabitants.
In addition, the company will continue to invest in new business lines such as Cabify Logistics, described as “the unit launched to transform the logistics needs of companies”. Essentially, the new business unit allows users to book a driver to deliver on the last mile, like a courier service.
The Cabify funding round has Orilla Asset Management and AXIS taking the lead. They join previous financiers such as the European Investment Bank that granted Cabify a loan in May last year to deploy 1,400 electric vehicles in Spain over the next few years. The €40-million loan corresponds to around €28,600 to purchase a vehicle and charging facility. So far, we know of Renault Mobilize cars being deployed, as reported. Then in March of this year, Cabify and Cooltra reportedly agreed to integrate Cooltra’s moped rental service into Cabify’s app. The service went live in Madrid, Barcelona and Valencia, where Cabify is making its first appearance. Cabify told electrive they were using Niu NQi LEVs. Niu is a large manufacturer from China.
Cabify targets all trips on its platform to be made in zero-emission vehicles by 2025 in Spain and by 2030 worldwide. According to its figures, the platform has 42 million registered users and 1.2 million drivers in Europe and South America. The company implements low-emission projects in both regions through alliances with manufacturers and in-app categories that only incorporate electrified vehicles (including plug-in hybrids).
Juan de Antonio, CEO of Cabify, said: “This commitment from strategic investors is a recognition of Cabify’s positive impact and potential to continue creating long-term value for our investors and the cities in which we operate.”
The company estimates its turnover in 2022 is already 24% higher than in 2019 and 32% higher than in 2021. Cabify aims to triple its revenues in the next three years.
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