The Routing Company’s technology powers an easy-to-use platform that helps cities and other transit providers solve the problem of how to deliver reliable demand-responsive transit.
The Routing Company, a start-up that builds dynamic routing and vehicle management solutions for public transit providers, has secured $5m in a seed funding round led by The Engine.
The financing, which brings the company’s total capital raised to $6.175m, will be used to accelerate commercialisation of its shared rides technology, and to refine the product.
Spun out of MIT’s Computer Science and Artificial Intelligence Laboratory (CSAIL), the Routing Company partners with cities to help improve the reach, efficiency, and sustainability of public transit.
Its proprietary technology powers an easy-to-use platform that helps cities and other transit providers solve the problem of how to deliver reliable demand-responsive transit – sustainably and at scale.
Public transportation is a $74bn industry in the US, according to the American Public Transportation Association, and 10 billion trips were taken on public transport in 2019 alone. Yet, a reliance on low-tech, fixed-route transit systems that predominantly serve city centres and commuter corridors has left nearly half of Americans without reliable access to public transport, reports the Routing Company.
“The product we’ve built gives cities and other transit providers the ability to serve their communities reliably and sustainably”
According to the Routing Company by partnering with it, cities and other transit providers can access a technology platform that improves the rider experience by making existing fleets more responsive to fluctuating demand and traffic patterns in low- and medium-density areas.
“Until now, tight budgets and inefficient technology have led to a poorer transit experience for riders in low- and medium-density areas. Covid-19 has unfortunately made the situation worse through reduced fare revenue and service cuts,” said James Cox, CEO of the Routing Company.
“The product we’ve built gives cities and other transit providers the ability to serve their communities reliably and sustainably – at scale – through transit that moves with you.”
The company also intends to use the funding to help “round out” a team that combines extensive ride-share industry leadership experience with deep academic expertise.
The Routing Company’s $5m seed round marks The Engine’s first investment from its Fund II. The venture firm, spun out of MIT, invests in early-stage “Tough Tech” companies that are solving the world’s most urgent problems – such as urban congestion and accessible transportation – through the convergence of breakthrough science, engineering, and leadership.
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