Uber has said that it will acquire Routematch, an Atlanta-based company that develops software for public transportation agencies. Uber did not reveal any details of the deal.
Routematch, the software company, was founded in the year 2000. It sells software to public transit agencies for data management, dispatching, ticketing, and trip booking provider and it serves more than 500 transit agency partners in communities around the world.
Uber said, “This acquisition brings together Uber’s expertise in on-demand, global mobility technologies with Routematch’s proven capabilities across paratransit, payments, fixed-route tools, and trip planning services. Both companies believe it will create new innovations that make it easier for agencies to provide the right transportation solutions to their riders, through an expanded suite of technologies.”
David Reich, head of Uber Transit, said “Uber knows that for cities to thrive, public transit has to thrive.”
Routematch’s chief executive, Pepper Harward, said that the company’s 175 employees are all expected to join Uber.
As the coronavirus pandemic has reduced Uber core ride-hailing business, the company is looking for a path towards long-term profitability. Now Uber is looking to extend its reach further into the public transit sector.
Uber confirmed that this acquisition will help boost the company’s efforts to integrate more public transportation services in its app, like trip planning and ticket purchases. The acquisition of Routematch will help Uber to better work with city transportation agencies to help them move away from fixed routes for their public transportation services to a more dynamic system based on real-time demand.
This acquisition will help big cities to manage their transportation networks in a better manner, including the payment process. This acquisition will provide residents with more convenient ways to book fares using the Uber platform. After the acquisition Uber will become an essential service provider for people to rely on day to day commuting, whether it’s a train, bus, car, bike, or electric scooter.
Both companies have faith that the acquisition will make it easier for transportation agencies to provide better transportation solutions to riders, through the expanded use of data-driven technologies.
Uber has been getting into tie-ups with public transportation agencies since 2015, to make their public transportation offerings more efficient by using Uber’s data and route planning expertise and it has improved its efforts in the recent months. In June Uber unveiled a partnership with Marin County in Northern California around the use of its fleet management software. The company has also worked with Denver and Las Vegas. In 2018, Uber partnered with mobile ticketing platform Masabi to let people book and use transit tickets from within the Uber app. Uber is also pushing further into the food delivery space with its USD 2.65 billion acquisition of Postmates.