Transportation Startup Via Makes $100 Million Bet on Mapping Company
The acquisition is Via’s third in the past several months as the pandemic shakes up public transportation
Via Transportation Inc. has acquired mapping software maker Remix for about $100 million, Via’s chief executive said in an interview, as the New York-based company seeks a larger slice of the new market bringing together ride-sharing and public transportation.
The deal is the third acquisition over the past several months for Via, which is bidding to play a central role as cities, transportation authorities and universities rejigger their transportation offerings in the wake of the coronavirus pandemic. The cash and equity deal comes almost two years after Via first became interested in buying Remix, said Daniel Ramot, Via’s CEO and co-founder.
San Francisco-based Remix, which was founded in 2014, has software that uses data to help cities plan their transportation routes and make decisions on such things as where to put one-way streets, bike lanes or special lanes for emergency services. Remix investors cashing out as part of the deal include venture-capital firm Sequoia and Y Combinator, a Silicon Valley startup accelerator.
A year ago, the pandemic threw into doubt the future of Via and public transportation. Lockdowns kept people at home and would-be riders shied away from busses, subways and trams for fear of catching the virus in closed spaces. Large cities are still working to assuage riders’ fears, a key step needed before economies around the world can fully reopen.
“Last summer, it became clear that…existing transportation systems were too rigid and weren’t working,” said Mr. Ramot.
To pay for the deal and the other recent acquisitions, Via used money it raised last year when Italy’s Agnelli family paid $200 million for a 9% stake in the company. That funding round valued all of Via at $2.25 billion.
Via’s software helps cities integrate their public transportation systems by adding aspects of ride-hailing apps like those of Uber Technologies Inc. and Lyft Inc. to existing infrastructure. Cities can use Via to offer on-demand transportation and pre-scheduled pickups for people who don’t live near bus stops. The services, which have been rolled out in 24 countries, can be accessed by a smartphone app, computer or with a phone call. The software can also be used to quickly identify unexpected surges in demand so extra buses can be sent to a specific route.
Privately held Via also competes with Uber and Lyft in offering its own service to ferry multiple riders in the same vehicle.
“It used to be that demographic shifts would happen over many years and public transportation would adapt over time. Now things are moving so quickly due to the pandemic,” said Mr. Ramot. “Maybe a city would change its transportation plan every 20 years and now thanks to data and algorithms that can be done much more quickly.”
Via isn’t looking to raise capital right now, but isn’t ruling out doing so in the future as it seeks to continue to grow, Mr. Ramot said. He declined to say whether Via might seek a stock market listing.
Exor—which also owns large stakes in luxury car maker Ferrari NV and Stellantis NV, the world’s third-largest car maker—is Via’s largest shareholder after Mr. Ramot and his co-founder Oren Shoval.