Alto (rideshare)
 | This article contains promotional content. (November 2024) |
 | |
| Company type | Private |
|---|---|
| Founded | 2018 |
| Founders | Will Coleman Alexandra Halbardier |
| Headquarters | Dallas |
Area served | Dallas and Houston |
| Products | Rideshare |
| Website | ridealto |
Alto is an American ridesharing company that positions itself as a premium alternative to industry-leaders Uber and Lyft based in Dallas, Texas. The company operates using a subscription membership model and drivers are employed by the company rather than independent contractors. It has abandoned its plan to move to a fully electric vehicle fleet.[1] It is available in its home market of Dallas and in Houston, Texas.
History
[edit]It was founded by Will Coleman and Alexandra Halbardier, both Dallas natives, in 2018.[2]
Alto expanded to Washington, DC in January 2022.[3] It launched in San Francisco in July 2022 but exited the market a year later. At the time, it said that the decision would speed its growth in the remaining markets of Los Angeles, Miami, Washington, D.C., Dallas and Houston and that it would soon announce new markets.[4]
In January 2024, it also abandoned the Washington, DC and Miami markets.[1] In Miami, this resulted in the firing of over 100 employees.[5] It has since also exited the Los Angeles market and retrenched to only be available in Dallas and Houston. The company also announced that it was abandoning its plans to transition to an all-EV fleet.[1]
In 2024, the Dallas City Council, controversially,[6] gave the company exclusive access and signage to curbside pickup at Dallas Love Field Airport.[7]
Fundraising
[edit]In June 2018, Alto raised $7.7 million in a Series A1 and followed that up with $6.8 million in a Series A2 in October 2019.[8] The company has also raised $2.8 million through a crowdfunding campaign.[9]
In 2021, Alto closed a $45 million Series B led by Tuesday Capital and Goff Capital which included notable new investors including Franklin Templeton.[10] The funding was intended accelerate a since abandoned plan to expand into new 10+ markets and transition to an all-EV fleet.[8]
Operations
[edit]Alto drivers are employed by the company and paid by the hour, rather than independent contractors who are paid by the trip as with competitors such as Uber and Lyft.[11] Whether this is better for drivers is debatable.[12]
Given the model's limitation on number of drivers, Alto does not attempt to compete with short wait times offered by competitors with its founder stating: “We’ll never pick you up in less than 10 minutes, even if the car is two minutes away from you. We want to train you to plan 10 minutes in advance and set that expectation.”[11]
References
[edit]- ^ a b c Muller, Joann (February 21, 2024). "Alto pulls out of Washington, D.C., Miami". Axios. Retrieved October 27, 2024.
- ^ O'Donnell, Paul (January 22, 2019). "This Dallas startup just hauled in $14.5 million to disrupt Uber, Lyft". Dallas News. Retrieved October 27, 2024.
- ^ Muller, Joann (January 8, 2022). "Rideshare 2.0: Uber, Lyft rivals roll out EVs and employee drivers". Axios. Retrieved October 27, 2024.
- ^ Council, Stephen (July 14, 2023). "Uber, Lyft challenger Alto leaves San Francisco after just a year". SF Gate. Retrieved October 27, 2024.
- ^ Bojnansky, Erik (February 13, 2024). "Dallas-based company to shut down Miami facility, lay off 100-plus employees - South Florida Business Journal". Biz Journals. Retrieved October 27, 2024.
- ^ "Dallas squeezes travelers with Alto rideshare contract at Love Field". Dallas News. April 3, 2024. Retrieved October 27, 2024.
- ^ Skores, Alexandra (March 27, 2024). "Dallas gives Alto five-year exclusive on passenger pickup curbside at Love Field". Dallas News. Retrieved October 27, 2024.
- ^ a b Walters, Natalie (June 28, 2021). "Alto raises $45 million to expand into 10-plus cities, plans to be all-electric by 2023". Dallas News. Retrieved October 27, 2024.
- ^ Reed, Alexa (May 2, 2024). "Ride-hailing service Alto launches first EV fleet". WFAA-TV. Retrieved October 27, 2024.
- ^ Edwards, Alex (June 28, 2021). "Dallas Rideshare Alto Closes $45M Series B, Bringing Total Funding to $60M". Dallas Innovates. Retrieved October 27, 2024.
- ^ a b Truong, Kevin (July 9, 2022). "Alto, Rideshare Firm With Full-Time Drivers, Launches in SF". The San Francisco Standard. Retrieved October 27, 2024.
- ^ Browning, Kellen (October 5, 2023). "A Start-Up's Alternative to Uber: Employing Its Own Drivers". New York Times. Retrieved October 27, 2024.
