The company is transforming its distributed real estate network of more than 4,500 parking lots and garages into neighbourhood hubs via its proximity-as-a-service platform.
US mobility and urban logistics hubs operator Reef Technology has secured $700m funding to help realise its goal of transforming urban centres into “15-minute cities”.
The 15-minute city concept supports the formation of a city of neighbourhoods where everything residents need can be found within a short walk or cycle ride from their homes.
The growth equity funding was led by Mubadala Capital with SoftBank, UBS Asset Management and Target Global.
Additionally, and separately, Reef and Oaktree Capital Management has raised $300m to establish the Neighbourhood Property Group, a joint infrastructure vehicle to acquire strategic real estate assets.
The group is expected to make long-term investments in neighbourhood infrastructure in order to provide Reef’s proximity services to communities across the US.
Reef aims to transform its distributed real estate network of more than 4,500 parking lots and garages into “Neighbourhood Hubs”, leveraging the power of proximity to connect people and neighbourhoods to locally curated goods, services, and experiences.
With more people living in cities than ever before, and the challenges that arise from modern consumption patterns, the company reckons there is an opportunity to reimagine more sustainable and neighbourhood-centric economies
Reef also wants to create a proximity-as-a-service platform for entrepreneurs and businesses need to deliver their products locally and at scale.
With more than 100 Neighbourhood Kitchens across some North American markets, Reef said it is empowering local restaurants and national brands to launch and expand their delivery service operations under a revenue share partnership.
“By working together, we can reimagine and rebuild our urban spaces for people, not just cars, and help our cities become more sustainable and inclusive centres of community and opportunity”
By providing ‘seamless’ access to a distributed network of Neighbourhood Kitchens, handling all costs, operations, and food preparation, Reef claims it provides a turnkey, zero capital investment solution for restaurateurs looking to launch or scale their business.
“We are excited for this next stage of growth and are committed to continue learning, listening and working with our communities to reimagine urban real estate into localised and networked infrastructure that entrepreneurs and cities can use to deliver goods and services sustainably and directly to our neighbourhoods, said Ari Ojalvo, CEO of Reef Technology.
“By working together, we can reimagine and rebuild our urban spaces for people, not just cars, and help our cities become more sustainable and inclusive centres of community and opportunity.”
Reef also announced partnerships with DHL for micro-fulfilment and last-block e-cargo bike delivery, national Covid testing and pop-up clinics with Carbon Health and BioReference, and vertical urban farming with Crate to Plate.
“We are proud to be an investor in Reef and support the company’s continued growth,” added Perry Offutt, head of infrastructure Americas of UBS Asset Management.
“We believe the 15-minute city is the future and Reef is the platform to deliver it.”
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