Uber has announced that it will acquire Routematch, an Atlanta-based company that develops public transport software. The news arrives in the midst of a ride-hail company's wider mass transportation push.
Uber did not disclose the terms of the agreement. Routematch, which was founded in 2000, sells data management, dispatching, travel booking and ticketing software to public transit agencies. Uber said the deal would help boost its own attempts to incorporate more public transit programs into its software, such as route preparation and ticket sales.
The news follows in the wake of Uber 's announcement that it will begin selling software that drives its ride-hailing service to transit authorities, with California's Marin County Transportation Authority as the first client. But the deal began low, driven logistics for only four wheelchair-accessible vans. The purchase of Routematch, which has agreements with over 500 public transit companies, seems to be oriented to seeking new clients and potential revenue sources for Uber 's software-as-a-service platform.
Routematch has had some success helping small, rural communities to improve their bus service. Last year, the organization partnered up with the town of Bad Axe, Michigan, to provide on-demand, Uber-like free bus service to hundreds of Puerto Ricans displaced by Hurricane Maria who had moved to the area for jobs. Routematch also supports authorities in Cecil County, Maryland, with creating a free on-demand bus service for individuals with drug abuse to drive to and from treatment sessions.
Over the years, Uber has been accused of interfering aggressively with and stealing subway, rail and bus passengers.
Declining bus and train boarding has been tied to the growth of app-based ride-hailing in hundreds of cities across the US. Recently, Uber has added transit directions and ticketing to its app in several cities, believing that by granting rail equal position in its system, it will mitigate the critique.
Last year, Uber revealed that it will begin selling train and bus tickets to customers in Denver , Colorado through its app. By then, the company has incorporated public transit services and guidance into the software for over a dozen other markets. Less than a year on, Uber reports that "more than two million passengers" have pursued Uber Transit.
Uber also recently announced plans to acquire a $2.65 billion grocery and food delivery service from Postmates. The company is struggling to expand its revenue-generating options as the pandemic continues to blight its core transport business. At the height of the April pandemic, Uber said his ride-hailing division had dropped by about 80 per cent. To reaction to the pandemic, the company has reduced more than 25% of its workforce. And with the number of COVID cases rising in many parts of the US, their losses are likely to worsen.
