Tired of Uber and Lyft? Freebee is offering a free – and cleaner – ride-hailing alternative.
The Miami company raised $8 million in a series A round to grow its on-demand ride-hailing service, all powered by electric vehicles. BP Ventures, a venture capital firm associated with British oil and gas giant BP (NYSE: BP), led the capital round with a $6 million investment.
Freebee stands out from the crowd in one major way: There's no charge for users. Costs are covered by local governments and entities such as corporate business parks and universities, which will fund routes to specific areas. Passengers can access rides through the company's mobile app.
Freebee is currently available in 25 municipalities and college campuses in Florida and Virginia, with plans to enter seven additional cities in two states in the coming months. The company has a fleet of more than 150 electric vehicles and employs at least 230 drivers on a full-time basis.
"This investment from BP Ventures is an endorsement of our idea and together we will roll Freebee out across the U.S.," co-founder and managing partner Kristopher Kimball said.
Freebee expects to move more than one million passengers through its ride hailing service by the end of 2022, according to a news release.
Shaun Healey, principal at BP Ventures, said the firm invests in companies that align with its mission to have net zero carbon emissions by 2050. Scientists believe reaching net zero is essential to avert the worst impacts of climate change. In the United States, emissions from fossil fuel burning transportation – including cars, trucks and heavy vehicles – account for 27% of total greenhouse gas emissions, according to the U.S. Environmental Protection Agency.
"The team at Freebee has come up with a brilliant business idea that incentivizes travel by electric vehicles without any cost to the user," Healey said. "We are very proud to have made our first investment in Miami’s thriving tech sector and look forward to getting started with the team.”
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