Alternative airport transport start-up Jayride has received an $8 million capital investment by an international venture capital fund – the company now has the goal to become a market leader in the United States.
With traditional airport transport expensive and crowded, this is not a surprise. As we explored in a previous blog, Sydney Airport alone makes a substantial amount of its revenue from parking fees. No shock then that Jayride, a ‘shared shuttle and private transfer’ company allowing users to share transportation to the airport, received this investment. Consumers do not appreciate excessive fees. The service allows for flexibility, with the consumer able to travel at a time that suits them.
Jayride had its beginnings in 2008. Since then, the company has developed multiple partnerships, and a client base that expands the world. It operates in the US, UK, Australia, Ireland and New Zealand and serves about 250 airports.
The $8 million investment came from Follow[the]Seed, a fund that The Australian Financial Review called a “fund for ‘habit-forming’ Aussie start-ups”. It provides a massive boost for companies getting off the ground. The Fund focuses on alternative type start-ups. Its first investment was a $600,000 cheque for ‘ClassCover’. This platform runs a relief teacher booking and management system for educational institutions.
How profitable will this investment be for Follow[the]seed and potential investors? The fund cited Jayride’s “strong leadership team, solid execution track record and big future vision” and reasons for investing. Other sources argue Jayride is a compelling alternative to Uber, as Jayride can also take advantage of pre-booked shuttles for transport that Uber cannot access. The fund’s founding partner interestingly suggested the best step for startups such as Jayride is not to seek investors straight away but to “bootstrap as long as you can”.
How will shared transport develop when Badgerys Creek Airport comes into the picture? As our previous blog said, rail is becoming an increasingly popular alternative to driving to the airport. Will ride sharing companies like Jayride become another compelling alternative? Or are they already?