Uber is all set to acquire an Atlanta based company, Routematch which develops software for public transportation agencies. The news comes amid the ride-hail company’s broader push into public transit.
However, the terms of the deal are still unknown as Uber is not disclosing them. Routematch was founded in 2000. It sells software to public transit agencies for data management, dispatching, trip booking, and ticketing.
Uber said the acquisition will help bolster its own efforts to integrate more public transportation services in its app, like route planning and ticket purchases.
However, Uber plans to sell its ride-hailing software to businesses of transit agencies. Uber has also found the first customer to buy this software – California’s Marin County transportation agency. But it was only for four wheelchair-accessible vans.
Routematch has partnerships with over 500 public transportation agencies. Routematch is keen on helping sell Uber’s software as service program.
Services of Routematch
However, Routematch has previously helped small, rural communities with improving their bus services.
The company has experience in providing services like Uber. Last year in the town of Bad Axe, many displaced people were provided free on-demand bus service. Hundreds of Puerto Ricans were displaced by Hurricane Maria and were relocating to the area for work.
Consequently, Routematch also assists officials in Cecil County, Maryland, to develop free, on-demand bus service.
Uber Integrating Transits and Directions in its App
From the past few years, there are many companies accusing Uber of directly competing with and poaching riders from subways, trains, and buses. Because of this, there is a decline in bus and subway demand. As customers for app-based ride-hailing companies are increasing and many cities across the US are using it.
Recently, Uber has added transit directions and ticketing to its app in some cities. So that it can save itself from criticism by adding this feature in its app.
However, Uber made the announcement last year, that it will start selling train and bus tickets through its app. It will sell tickets to customers in Denver, Colorado.
Since last year, Uber has introduced directions and schedules for public transportation into its app for many other cities. Fortunately, the company received a good response. It had over 2 million riders that tried Uber Transit.
The company also plans to acquire Postmates for $2.65 billion, which is a grocery and food delivery service.
The company is finding ways to expand and generate revenue as due to the coronavirus pandemic it is unable to make profits from its core riding business.
In April, its ride-hailing business was down by about 80 percent. To survive the pandemic crisis the company had to cut 25 percent of its workforce. As coronavirus cases are increasing in the US, the company’s losses are likely to grow worse.