Hip Raises $12M to Reimagine Commuting for Hybrid Work

The Shift in Commuting and Hip's Response

The widespread impact of COVID-19 brought an end to the daily commute for a significant portion of the American workforce almost a year ago, resulting in a substantial downturn for the ridesharing sector.

Hip, a mobility-as-a-service startup that facilitated connections between commuters and external bus and shuttle services through its application, experienced a decline in both its user base and revenue, mirroring the challenges faced by many in the industry.

Expanding Services During Disruption

Rather than implementing cost-reduction measures and awaiting the resolution of the pandemic's disruptions, Hip strategically chose to broaden its service offerings.

A new business-to-business (B2B) component was integrated into the platform, specifically targeting companies and manufacturing organizations preparing for the phased return of their employees.

Driven by Corporate Needs

According to CEO Amiad Solomon, this decision stemmed from conversations with major corporations grappling with the complexities of safely reintegrating their workforce into office environments.

“We didn’t scale back; instead, we actively enhanced our platform,” Solomon stated in a recent discussion.

Positive Outcomes and Funding

This strategic move has proven successful, according to Solomon.

The company, which has a team of 20 employees distributed between offices in New York City and Tel Aviv, has not only secured new clients but has also successfully raised $12 million in funding.

The funding round was primarily led by NFX and Magenta Venture Partners, with additional investment from AltaIR Capital and former executives from Uber, Booking.com, and Google. These funds will be allocated towards expanding the team and bolstering engineering, sales, and operational capabilities.

How Hip Assists Companies

Hip collaborates with companies across various locations to assess their specific transportation requirements.

The company has developed an internal tool enabling businesses to upload employee data, including home addresses, facilitating the determination of needs and cost management.

Platform Features and Capabilities

At its core, the Hip platform establishes connections between companies and available bus and shuttle providers.

It provides route optimization and incorporates a contact-tracing feature to aid companies in monitoring potential COVID-19 infections.

Furthermore, companies can utilize the platform to enforce vehicle capacity limits and integrate customized features into the app, such as health declarations and consent forms.

Employees can leverage the app to book tickets, reserve seats, and monitor their transportation in real-time.

A New Approach to Employee Shuttles

While employee shuttle services are not novel, Solomon emphasizes the enhanced flexibility offered by this platform.

“The routes aren’t fixed, the ridership varies, and the frequency isn’t predetermined,” Solomon explained.

“We’ve constructed a comprehensive infrastructure, encompassing both technological advancements and an expanded distribution network, now supporting over 200 cities through our U.S. partners.”

Current Traction and Future Outlook

Hip secured its first corporate client in late October and currently serves a growing number of active customers.

Additionally, numerous other companies are poised to utilize the platform as they finalize their plans for employee return.

“Our engagement with the corporate sector has revealed substantial opportunities,” Solomon noted.

“We anticipate a continued shift towards providing cutting-edge software solutions and bridging the gap between these systems and transportation providers – effectively serving as the link between corporations and their ground transportation needs and our network of trusted partners.”