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VIA ACQUIRES DELIVERY LOGISTICS STARTUP FLEETONOMY TO BOLSTER FULFILLMENT WITH
AI

Kyle Wiggers@Kyle_L_Wiggers
October 1, 2020 11:06 AM
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Image Credit: Via

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In a move to expand its business into the logistics and delivery segment,
ride-hailing startup Via today announced that it acquired Fleetonomy for an
undisclosed sum. Via, which says it plans to apply Fleetonomy’s expertise in
demand prediction and fleet utilization to support fully integrated, digitally
powered logistics solutions, says the pandemic has highlighted the growing need
for essential services and goods delivery.

Tel Aviv-based Fleetonomy, which was founded in 2017 by CEO Israel Duanis and
CTO Lior Gerenstein, taps AI to analyze data and deliver insights with the goal
of maximizing inventory and promoting proactive maintenance. The company
provides white label ride-sharing and on-demand car subscription services that
can accommodate semiautonomous and autonomous fleets. With Fleetonomy’s
cloud-based suite of tools, managers can simulate services before deploying cars
on the road, adjusting for factors such as fleet size, parking, charging
locations, demand, and more.

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“As we continue to build the next generation of public transportation and
delivery infrastructure, we are proud to partner with Fleetonomy to step into
this new phase of growth,” Via cofounders Daniel Ramot and Oren Shoval said in a
statement. “We have been consistently impressed by Israel, Lior, and the entire
Fleetonomy team, and by the beautifully designed and exceptionally engineered
products they have created. We share a vision for the future of mobility and
look forward to realizing this vision together.”

Prior to the acquisition, Fleetonomy raised $3 million in a seed round led by
Vertex Ventures, with participation from Kardan Ventures and VectoIQ.

“Today is a very exciting milestone for our company,” Duanis said. “When Lior
and I founded Fleetonomy three years ago, we had a very big mission in mind — to
provide a new way of managing fleet based services … In the past three years,
with the incredible Fleetonomy team and partners along the way, we’ve been very
lucky to see this mission turn to reality with customers such as Toyota, Jaguar
Land Rover, Audi, and other top players in the mobility space. By joining Via,
we will be able to expand and extend this mission and work together on Via’s
great vision of changing the landscape of transportation.”

The logistics market is an increasingly attractive investment for companies like
Via. Even pre-pandemic, last-mile delivery was fast becoming the most expensive
part of the supply chain, with research firm Capgemini pegging the percentage of
costs at 41%.

That no doubt factored into Via’s calculation, which faces an uphill battle as
the pandemic rages on around the world. In March, Via suspended shared rides in
areas like New York City, Chicago, and San Francisco, a blow to its shared-ride
business consumer model. A report from Edison Trends found that spending on
ridesharing plummeted around 21% in the seven-day period ending March 16; Via
competitor Uber said gross bookings on rides were down 75% in the three months
through June, and Lyft previously said that April ridership was down 75% from
April 2019.

Via — which has raised $500 million in venture capital to date at a $2.25
billion valuation — first launched in New York City in 2013, but it’s now
deployed globally in more than 70 cities in 20 countries, operating in Europe as
ViaVan in partnership with Mercedes-Benz Vans. As of March, the company says it
has provided over 70 million rides, up from 50 million as of July 2019. And Via
works with more than 150 partners across municipalities, public transit
agencies, transportation operators, corporations, schools, and universities to
optimize their transport systems, such as the city of West Sacramento, the Los
Angeles Metro, Transport for London, Sydney’s Transport for New South Wales, and
the New York City Department of Education.

Via’s ride-sharing app and service tap AI to combine multiple passengers or
packages headed in the same direction in real time, ostensibly reducing urban
congestion and emissions while providing a lower-cost mobility service. Shared
rides are usually from corner-to-corner, requiring passengers to walk to a
nearby pickup point indicated on the app.

Last year, Via announced the debut of a driverless shuttle program in New South
Wales, Australia, in partnership with the BusBot project, local bus operator
Busways, local government agency Transport for New South Wales, and startup
EasyMile. More recently, the company launched an on-demand transportation pilot
in Sacramento, California, that let customers hail rides from apps and the
city’s public transportation department. Just this month, Via unveiled in
Edmonton what it claims will be Canada’s largest on-demand transit service, with
over 60 shuttles that will connect commuters and residents to transit hubs
across the city starting in mid-2021. And in the U.K., Via was awarded a
multimillion-dollar grant by Innovate U.K., Britain’s innovation agency, to
develop a platform that supports local partners as they optimize emergency and
last-mile delivery efforts.

Ramot has said that the end goal for Via is an initial public offering. It’s
unclear when that might happen.

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Author
Kyle Wiggers

Topics
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Big Data

Business

Cloud

Commerce

Dev

Enterprise

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Transportation





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