Alto, a Dallas-based rideshare startup, has just completed its Series B fundraising and raised $45 million. This funding will help Alto expand beyond its current markets, which include Dallas, Los Angeles and Houston. Alto will be adding more than 10 cities across the U.S. to its fleet.
The Series B funding was led by Tuesday Capital and Goff Capital.
Learn more about how Alto handled the coronavirus by adapting and pivoting to delivery.
Learn more about this major news here: Alto Makes MAJOR Announcement That Will Effect Lyft & Uber Drivers!
Alto’s Plans for Expansion
With this funding, Alto is able to realize its expansion plans, plus transition to an electric fleet.
Along with expanding into more markets, the $45 million will allow Alto to replace and expand its fleet of vehicles to entirely electric vehicles (EVs). Alto is now set to become the first national, 100% electric ridesharing fleet with more than 3,000 vehicles nationwide by the end of 2023.
“We are excited to have such strong support from investors who share our vision for revolutionizing the rideshare industry,” said Will Coleman, Founder and CEO of Alto. “With this new funding, we’re on track to take Alto’s safe, consistent, and hospitable service across the country, and are set to become the world’s largest fully electric ride-hail fleet operator over the next two years.”
What is Alto?
Alto was founded in 2018, and is unique among rideshare companies as Also offers drivers employee status. In addition to hiring employees, not contractors, Alto also provides their drivers with the vehicles used to rideshare on their platform.
Read more about Alto’s new business model for drivers.
The models of EVs have not yet been determined, but Alto is considering their options, including but not limited to Rivian, GM, Audi, Hyundai, and Land Rover. Their current fleet model includes mid-size SUVs, so that will likely be the route Alto takes for the EVs as well.
As W-2 employees, drivers earn a set hourly wage. According to Alto, drivers can earn up to $21/hr in LA, $18/hr in Dallas, and $16/hr in Houston in base-wages, plus Alto offers other incentives and access to overtime pay allowing their most active drivers to make significantly more.
In addition to employee status, drivers are able to gain regular employee benefits including company-sponsored healthcare benefits and all the other protections of employment like workers compensation insurance and company contributions to social security.
Since Alto provides their drivers with vehicles, that’s another expense drivers don’t have to worry about with driving for the Alto fleet. Alto provides the car, and pays for fuel, insurance, maintenance, etc.
Alto even hires service agents in each market to provide maintenance and cleaning services, allowing drivers to simply show up and drive with no worries.
While it is not yet announced which markets they will be breaking into, Alto does expect to expand from coast to coast within the next few years. Alto is aiming to be in the top 20 largest metro areas in the US in the next two to three years, and this funding will them to achieve that goal.
So, if you’re interested in joining their team of drivers, keep an eye on your market. Head to the Alto website and join the waitlist by entering your email address and zip code.
Drivers, would you drive for Alto if it came to your city?
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