GlobalData’s Q1 2021 Consumer Survey found that 43% of Gen Z and 41% of millennials are ‘often’ or ‘always’ influenced by how digitally advanced a product or service is.
Out of the 26 travel app venture financing deals in 2021, 46% of them involved ridesharing, rental, or hailing companies, according to GlobalData. The leading data and analytics company notes that this significant percentage showcases renewed confidence from investors as the impact of the pandemic lessens, as well as their keen interest in technologically advanced app-based companies that can offer alternative transportation methods, which is also in growing demand from consumers.
According to GlobalData’s Deals Database, in 2021, there was a 183% year-on-year increase in the number of venture financing deals that took place involving travel and tourism apps, as the pandemic drained confidence from investors in 2020. Financing in ridesharing, rental, and hailing apps drove this steep increase in deal frequency.
Ralph Hollister, Travel and Tourism Analyst at GlobalData, comments: “The ridesharing, rental and hailing start-ups that received venture financing in 2021 share common themes of operating innovative business models and working with advanced forms of technology which are integrated into their apps. Investors witnessed these mostly young companies navigate through the pandemic, which demonstrated that many have resilient business models.”
French start-up BlaBlaCar carried out a new $115 million funding round in 2021. The company has over 90 million members travelling by carpool or long-distance buses across 22 markets.
Hollister continues: “BlaBlaCar’s focus on carpooling and the sharing economy through its app has allowed the company to become a sort of Airbnb for transport. It benefits from a highly unique type of supply that has not been seen in this space, as any car owner can share their long-distance ride with passengers wanting to travel on the same route.”
Additionally, BlaBlaCar uses Machine Learning to maximise the success of its new drivers. It uses the data it collects from members to create personalized recommendations and advice, which are then pushed to drivers to increase engagement. This unique type of business model and use of advanced technologies is what attracts many initial investors and consumers.
GlobalData’s Q1 2021 Consumer Survey found that 43% of Gen Z and 41% of millennials are ‘often’ or ‘always’ influenced by how digitally advanced a product or service is. This points to the fact that these consumers will be leading demand for app-based transportation alternatives.
Hollister concludes: “Innovate business models and use of technology will continue to create new entrants into the ridesharing, rental and hailing sub-sectors, further attracting financing from investors that are looking for a piece of the next Uber.”
Tatiana is the news coordinator for TravelDailyNews Media Network (traveldailynews.gr, traveldailynews.com and traveldailynews.asia). Her role includes monitoring the hundreds of news sources of TravelDailyNews Media Network and skimming the most important according to our strategy.
She holds a Bachelor's degree in Communication & Mass Media from Panteion University of Political & Social Studies of Athens and she has been editor and editor-in-chief in various economic magazines and newspapers.