Blacklane Secures $26M to Expand Sustainable Chauffeur Service

Blacklane Secures €22 Million in Funding for Expansion

As major on-demand transportation companies like Uber continue to grow, a smaller startup in Germany has successfully obtained funding, highlighting the remaining opportunities for businesses focusing on specialized service areas. Blacklane, a Berlin-based company offering on-demand black-car chauffeur services, operates in cities including Berlin, London, Dubai, Los Angeles, New York, Paris, Singapore, and 14 others. They have recently completed a funding round of €22 million, equivalent to $26 million based on current exchange rates.

Investment to Drive Sustainable Travel and Business Flexibility

Following their majority stake acquisition of Havn, the electric car service originating from Jaguar in London, Blacklane announced that this new funding will be allocated towards expanding sustainable travel initiatives. Furthermore, the company intends to enhance its existing services by providing more adaptable riding options for customers.

Demonstrating Growth Amidst Pandemic Challenges

This funding round, occurring at an increased valuation, signifies the company’s positive trajectory after a challenging year. Monthly revenues experienced a 99% decline in the wake of the COVID-19 pandemic and the subsequent reduction in travel, particularly among individuals hesitant to share enclosed spaces.

CEO Statement on Innovation and Resilience

“The global travel and mobility sectors have faced significant difficulties, with numerous companies forced to implement drastic cuts, suspend operations, or cease trading altogether,” stated Dr. Jens Wohltorf, CEO and co-founder of Blacklane. “Blacklane has proactively addressed the evolving needs of travelers, and this financing will enable us to accelerate innovation without any workforce reductions.”

Investment Sources and Previous Funding

The investment originates from existing investors, including German automotive manufacturer Daimler, the UAE’s ALFAHIM Group, and btov Partners. While the specific valuation figures remain undisclosed, Blacklane has previously secured approximately $100 million in funding, including a $45 million round in 2018. Additional past investors include the strategic investment division of Recruit Holdings, a Japanese HR firm.

Impact of the COVID-19 Pandemic on Blacklane

The funding arrives after an exceptionally difficult year for travel and transportation startups due to the COVID-19 pandemic. Blacklane experienced a 99% decrease in monthly revenues following the pandemic’s onset last year.

Adapting to a Changed Landscape

Several companies in the sector successfully mitigated declines in their core ride-hailing services by diversifying into areas like food delivery or alternative transportation methods, such as bicycles or scooters. These services were often repositioned as safer alternatives to public transport. However, Blacklane had always catered to a more premium clientele, focusing on higher-end rides and airport transfers, both of which were severely impacted by travel restrictions.

A Shift in Strategy and Focus on Recovery

The timing proved particularly challenging for Blacklane, as the company appeared poised to achieve profitability before the pandemic. (The most recent financial results available indicate a net loss of approximately $18 million in 2018, with 2020 figures pending.)

Signs of Resilience and a Positive Outlook

However, Blacklane’s ability to secure funding at an up round reveals a different aspect of its story.

Early Signs of Recovery and Diversification Efforts

As the transportation and travel industries began to show initial signs of recovery last summer, Blacklane also experienced a resurgence. This was coupled with the company’s initial steps towards diversification.

New Services and Strategic Acquisition

Earlier this month, Blacklane introduced “chauffeur hailing” in 22 cities, offering an on-demand service with order fulfillment times of under 30 minutes – a significant reduction from its previous advanced booking system. The company also adjusted its pricing structure to remain competitive for shorter distances, given the slow recovery of airport-related travel. Furthermore, Blacklane acquired a majority stake in Havn, an electric car service developed by Jaguar, to expand its sustainable travel options alongside its existing fleet of Tesla vehicles.

Commitment to Sustainable and Responsible Travel

“Global travel restrictions present a unique opportunity to redefine our expectations for safe and sustainable journeys,” Wohltorf stated. “Blacklane is committed to a responsible recovery and continued growth, prioritizing both people and the planet.”