French startup Drive just raised $2.7 million (€2 million) in Series A funding from undisclosed business angels and institutional investors. The service is reminiscent of Chauffeur-privé or LeCab — it’s an Uber-like service that owns its cars and operates with fixed prices.
But is there enough room for yet another startup? Chauffeur-privé, LeCab, SnapCar and Uber are already fighting hard to take over the French market. As this industry is a very capital-intensive one, today’s funding round is a good indication for Drive’s future.
Prices seem to be relatively similar to LeCab’s. But Drive operates Mercedes cars, that may be the main difference. Thanks to the new influx of money, the company plans to have more than a hundred cars in Paris and to open shop in multiple European cities by the end of 2014. In other words, the five month old startup remains quite small but already has expansion plans in mind.
Back in November, LeCab raised $6.8 million (€5 million). At the time, the company said that it wanted to have 350 cars in Paris alone by the end of 2013. Drive won’t be as ubiquitous in Paris.
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