Ride-sharing startup Via celebrated Labor Day by landing a major investment.
The New York startup received a $50 million investment from the vans division of Mercedes-Benz in the form of a strategic partnership.
As part of the partnership, Via will use Mercedes vans to launch its service in London before expanding to additional European cities. The joint venture will also license Via's software to European municipalities and transit authorities.
According to reporting by TechCrunch, the deal is part of a $250 million round in which Daimler was the lead investor.
Via chief of staff Rachel Lau wouldn't comment on the larger round, which is still in the final stages. However, she did confirm that the $50 million deal is part of a larger partnership with Daimler.
“We believe our technology, combined with the exceptional design and engineering of Mercedes-Benz Vans, will allow us to bring our vision of efficient, affordable, sustainable and comfortable shared rides to life,” Lau said.
Volker Mornhinweg, head of Mercedes-Benz Vans, will join the Via board as part of the deal.
Unlike other ride-hailing companies, Via only offers shared rides, grouping riders who are headed in the same direction. It also stands out from its competitors by only charging a flat fee.
The startup will launch its service in London by the end of 2017. Lau said Via is currently working with companies in Paris to license its software, and that is also in talks with potential partners outside of Europe.
Via operates in three cities stateside: New York, Chicago and Washington D.C. It also has a software partnership deal with Austin’s public transit agency, Capital Metro.
Lau said the company would continue to grow in its existing markets while opening new ones, both through its branded service and licensing deals. She also said Via would be hiring to aid its expansion efforts.
Once finalized, this deal could push Via into unicorn status. To date, the company has raised $137 million over three rounds in as many years.
Image via Daimler.
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