Táximo (www.taximo.co) just closed a USD $4.6 million investment round, the majority of which will be used to purchase 80 new taxis in Colombia and expand the operations regionally. Táximo’s CEO and co-founder Antoine Dumit is excited: “With the closing of the taxi fund, we kick-start an institutional investment channel to supplement our existing growth in Colombia and expand to Peru”. Táximo currently has a fleet of 1000 taxis operating throughout four Colombian cities and a net revenue run-rate of over USD $10 million. Táximo previously closed Seed and Series A rounds from Colombian and international investors.
In a market where most innovation comes through the development of apps, Táximo is innovating offline. The Latin American taxi market is very fragmented. There are hardly any large taxi companies, instead most taxis are owned as investments by middle class families. Táximo offers these families a full suite of management services to strengthen their investment. Due to demand consistently outpacing supply, taxi owners have little incentive to improve operational efficiency or user experience. As a result, taxis are often in poor condition, drivers do not receive any training in customer service and driver churn is as high as 60% per month. Táximo addresses these issues head on. Managing the drivers, maintaining the vehicles and providing an excellent user experience allows Táximo to guarantee investors a fixed monthly return. This frees taxi owners of the risk and hassle, while Táximo benefits from economies of scale and is able to invest in maintaining a professional fleet of cars and drivers. Tremendous demand still exists for taxis in Latin America, even when compared to services like Uber, due to limited access to credit.
Táximo was created through Polymath Ventures (polymathv.com), which builds companies that serve the emerging middle class in Latin America.
Dumit adds: “Polymath did a great job at discovering the hidden potential in the taxi market. For Táximo it has been great to be a Polymath portfolio company, both in terms of finding the right talent for the business as well as helping us develop the best growth strategy.”