Alto: Launching the Next Rideshare Revolution
Offering transportation services using a fleet of safe and well-maintained vehicles
We have come a long way from taxi services, with platforms like Uber and Lyft taking over the rideshare space. While the evolution of transportation services has opened up many job opportunities and generated billions in revenue, there are still holes within these business models. Relying on contract or “gig” drivers can make it difficult for companies to attract and maintain an optimal fleet, and it also opens the door for potentially dangerous situations. In 2018, Uber identified reports of 3,045 sexual assaults, nine murders, and 58 individuals killed in car accidents.
Enter Alumni Ventures portfolio company Alto, a premium brand in the rideshare space with a different model. The company’s unique mobility platform provides on-demand ride-hailing and delivery services via company-owned fleets. Unlike other rideshare options, Alto’s drivers are W2 employees who undergo background checks and extensive training — giving customers a safe, consistent, and trusted experience at competitive prices.
Better and Safer Rides
Alto targets a subset of the ~$60 billion ride-sharing market by catering its services to wealthier consumers and businesses who value cleanliness, consistency, and safety. Consumers can book rides and schedule food delivery, and companies can book through a web portal for multiple riders. The company also offers corporate courier service, food delivery for corporate lunches, and delivery for local errands to consumers through its concierge service. Additionally, all rides are video monitored in real-time to keep passengers safe.
Alto has already launched in three major cities — Dallas (population: ~1.4 million), Houston (population: ~2.4 million), and Los Angeles (population: ~4 million). To date, Alto has provided over 170K rides and is projected to be at a run rate of over 600K rides annually by the end of the year by expanding to more locations.
A Strong Competitor with an Exceptional Team
Alto’s competitive moats are mainly around its integrated business model. By owning the vehicles and employing the drivers, Alto has much greater oversight of its operations than its competitors. The company is also defining new safety, cleanliness, consistency, and value standards across the mobility/transportation industry. Unlike competitors, Alto has control over all its assets (vehicles, employees, etc.), allowing them to mold its model to suit customers better. This has proven beneficial, with Alto earning a net promoter score of 80 versus 37 for Uber and 9 for Lyft.
Alto also boasts an exceptional team with expertise in the transportation space. CEO Will Coleman is a former partner at McKinsey & Company, where he led the consumer travel practice. The company also hired several former executives from car rental service Silvercar (acquired by Audi).
How We Are Involved
Nassau Street Ventures (for the Princeton community) and Bascom Ventures (for the University of Wisconsin community) deployed capital in Alto’s $45 million Series B co-led by Tuesday Capital and Goff Capital. Other participating investors include Franklin Templeton, Senterra, Green Park & Golf Ventures, and Hope Ventures Capital.