Over two years ago, Ludwig Schoenack, Nikolaus Volk, and Francesco Wiedemann observed the wide range of transportation choices available in most U.S. cities – including scooters, ride-sharing, public transportation, and car-sharing – and identified an unmet need within the transportation sector.

Individuals who preferred not to own a vehicle, yet required one for a short period, typically faced limited choices: visiting a traditional car rental agency, often situated at an airport or on the outskirts of the city, or utilizing a car-sharing service. These three friends, all originally from Germany and having connected in San Francisco, decided to combine their professional backgrounds from BMW, McKinsey, and Uber to establish Kyte, aiming to redefine the car rental experience without the substantial costs associated with fleet ownership and maintenance.

Kyte developed a fleet-logistics platform enabling customers to reserve vehicles through their application or website. The vehicles, strategically positioned in central city locations, are brought directly to the customer’s location by independent contractors. Kyte also manages vehicle retrieval and refueling at no additional cost.

“Our core belief is that people value the convenience of having a car readily available, so we focused on delivering that convenience directly to them,” Schoenack explained in a recent discussion.

Kyte collaborates with car rental companies and other fleet management organizations, allowing the company to concentrate on the customer experience and its technology.

Founded in late 2018 and launching its initial services in February 2019, the startup has attracted significant investor interest. The company announced Tuesday that it secured $9 million in funding led by DN Capital and Amplo VC. The investment round also included participation from numerous individual investors with experience in the mobility sector, such as former Uber leaders Ed Baker, Jörg Heilig, Josh Mohrer, and William Barnes, alongside Lime co-founder Toby Sun and Kayak and Travelocity co-founder Terry Jones.

These funds are currently being used to support Kyte’s expansion into new markets, beginning with Washington, D.C. Kyte currently operates in Boston, Los Angeles, and San Francisco.

Kyte’s founders did not disclose specific revenue figures, but stated that the company generates a “substantial six-figure” revenue amount each month. Schoenack also noted that Kyte’s monthly revenue has increased by 400% since March, as more consumers have opted for car rentals during the COVID-19 pandemic.

“Even prior to the onset of COVID-19, it was evident that a shift in how people access transportation was necessary,” Schoenack stated. The pandemic has encouraged consumers to explore alternatives like Kyte, as many have become hesitant to travel by air.

Despite this rapid growth, Schoenack indicated that over half of Kyte’s rentals are from repeat customers.

Kyte has also discovered that its partners – which Schoenack identified as leading rental car companies nationwide – are eager participants, as it facilitates getting vehicles into the hands of customers. These rental car companies experienced significant challenges due to COVID-19, with a large portion of their operations centered around airports, leaving them with substantial depreciating assets that were not generating income.

Steve Schlenker, co-founder and managing director at DN Capital, believes Kyte will play a vital role in the future of transportation.

“The pandemic has accelerated changes in urban environments and consumer transportation habits,” Schlenker said. “Kyte’s unique operational approach supports this evolution while delivering a level of service and convenience that competing options cannot match.”