Ride-hailing, bike and scooter companies probably raised less money than you thought – TechCrunch
After years of fierce competition as private companies, Uber and Lyft go public in US markets. Scooter service providers, the transport trend du jour, claimed hundreds of millions of dollars to scate scooters on city pavements (to residents and regulators alike) through 2017 and 2018. On the other side of the Pacific, Grab and Go-Jek raises money with money as they continue to scale up and out.
How much of the sum went to companies in the trip, food delivery and last-mile transport categories (which include bicycles and scooters)? Probably not as much as you would think.
Overall, companies in these sectors increased less than 1[ads1]0 percent of the total venture dollar volume reported for each of the last five calendar years.
We have mapped it out based on annual totals. Take a look:
To be sure, we're still talking about a lot of money here. Enterprises in these three categories increased more than $ 22 billion in venture financing rounds (not including private equity) in 2017 and more than $ 18 billion in 2018.
Transport space ventures were large in the media and how could they not? It is a forbidden capital-intensive market to record, and requires companies to raise massive sums, giving good headlines.
In their early years, the competition between on-demand, point-to-point transport market companies rewarded brashness and speed with early scale and the long-term structural benefits given to the fastest growing companies.
But these benefits may not have been as rigid as first expected. Lift hit Uber to the public markets, raised its valuation during the IPO roadshow, priced at the top of the expanded area, and then appeared 21 percent when it began to trade.
This success means that the red bits of our chart of it were & # 39; t all stupid rates. Instead, a good deal of equity is now represented floating. Of course, there is much more work to do for literally all other rideshopping, ridesharing, scooter rentals and other unicorns wheels in the world: They still have to go public.
