Fetii: Rideshare App Backed by Mark Cuban & Y Combinator

The Genesis of Fetii: Addressing a Gap in Group Transportation

While pursuing his degree at Texas A&M University, Matthew Iommi identified a significant deficiency in the transportation landscape. Existing options proved inadequate for efficiently moving larger groups of individuals.

College students seeking convenient transportation for evenings out often lacked access to on-demand services comparable in ease of use, cost-effectiveness, and availability to established platforms like Uber and Lyft.

Iommi, currently 28 years old, explained to TechCrunch that exceeding a group size of six or seven people necessitated splitting into multiple vehicles. This approach was both unsustainable and diminished the overall experience, preventing companions from traveling together.

The Alternative and Its Drawbacks

The alternative – pre-booking a charter vehicle – presented its own set of challenges. Typically, this involved paying for a minimum number of hours, regardless of actual usage.

Furthermore, dividing the cost among friends proved cumbersome and lacked streamlined solutions.

From Concept to Reality: Launching Fetii

In 2020, Iommi and his co-founder, Justin Rath, took the initiative to purchase a party bus. This acquisition served as the foundation for experimenting with an on-demand group rideshare service.

Designed to accommodate between seven and fourteen passengers, the service was christened Fetii, a French Oceanic word signifying an extension of family.

“Our core belief is that rideshare fundamentally connects people,” Iommi stated.

Rapid Growth and Expansion

Within five years, Fetii has expanded its operations to 68 cities across six states. These include major metropolitan areas such as Dallas, San Antonio, Houston, Atlanta, Nashville, Phoenix, and Scottsdale.

The company now reports transporting over 200,000 passengers monthly.

While advance reservations are available, the majority – between 75% and 80% – of rides are fulfilled on-demand.

Securing Funding for Future Growth

The Austin-based startup recently secured $7.35 million in seed funding. This round was spearheaded by Mark Cuban, with additional participation from Y Combinator, Goodwater Capital, and other investors.

Fetii intends to utilize these funds to broaden its reach into new markets, specifically targeting Florida, California, and Massachusetts.

Designed for Young Adults, by Young Adults

Fetii represents a novel approach to group transportation, though it isn’t the first venture to explore this market. Previously, Chariot, a commuter shuttle service, was acquired by Ford in 2016, only to be discontinued by 2019. Iommi clarifies that Chariot’s concentration on employee and commuter transport presented challenges due to limited service hours.

Similarly, Uber launched Uber Charter in 2022, partnering with US Coachways to facilitate bookings for party buses and vans. This initiative, however, was ultimately discontinued.

These prior experiences provided valuable insights for Iommi and Rath. As students themselves, launching a startup required a cost-effective strategy, avoiding the substantial expenditures often associated with large-scale rideshare company launches.

Instead of targeting corporate functions, weddings, or typical charter services, Fetii specifically focused on the needs of college students.

“This targeted approach is what previous companies overlooked,” Iommi stated, “creating a service and brand that resonates with young adults who frequently travel in groups.”

The majority of Fetii’s clientele are aged between 21 and 30, utilizing the platform for a variety of occasions, including social outings, bachelor/bachelorette parties, weddings, and sporting events. The service also caters to groups attending corporate events, conferences, and festivals.

“Users frequently rely on Fetii multiple times weekly, whether for casual gatherings with friends or for formal events,” Iommi explained.

Developing a streamlined payment system also posed a unique challenge for the company.

“Payment functions similarly to Lime and Bird, with riders scanning a QR code,” Iommi described. “This allows each individual within the group to pay their share—approximately $5 per person—rather than relying on one person to cover the entire cost.”

By initially concentrating on college students, Fetii has established a scalable model.

“Our strategy involves initially partnering with universities and their organizations, such as sports teams and fraternities/sororities, to educate them on the platform’s functionality,” he said.

Offering the first ride free of charge is a key component of Fetii’s strategy, fostering a strong presence within the college community. This approach attracts drivers and helps balance supply and demand.

Fetii utilizes a “Fetii VSP” (vehicle service provider) program, enabling fleet owners and drivers to integrate their vans into the Fetii network.

Following successful establishment within college environments, the company expands its reach. The visibility of branded Fetii vans and positive word-of-mouth contribute to growth, as each rider has the potential to become a repeat customer and advocate.

Notably, a positive review from Mark Cuban’s daughter led the investor and “Shark Tank” personality to participate in Fetii’s seed funding round.

“My daughter consistently used Fetii with her friends and highly recommended it,” Cuban shared with TechCrunch. “Her endorsement prompted me to contact Matthew, and the more I learned, the more impressed I became.”

When questioned about potentially missing an early investment opportunity with Uber in 2009, Cuban responded: “The market conditions were different then. Fetii has the potential for global expansion and significant achievements.”

Iommi revealed that an acquisition by Uber or Lyft was initially considered as a potential exit strategy, though the company remains open to partnerships with these ride-hailing giants.

Cuban expressed a preference for sustained profitability and cash flow over a merger or acquisition. “I generally favor building a highly profitable business that generates substantial cash,” he stated.