smartryde Secures Series A Funding for Global Airport Transfer Expansion

SmartRyde Secures $1.6 Million Series A Funding

SmartRyde, a Japan-based platform for pre-booked airport transfers, functions as a marketplace. It effectively links travelers with local transportation providers and online travel agencies (OTAs).

Company Origins and Growth

Co-founder and CEO, Sota Kimura, established SmartRyde in 2017. The impetus for its creation stemmed from personal difficulties encountered while securing airport transportation during international travel, as Kimura shared with TechCrunch.

Currently, SmartRyde facilitates airport transfer services in 150 countries, encompassing a network of 700 airports worldwide. The platform has forged partnerships with approximately 650 taxi companies.

Strategic Partnerships and Service Differentiation

SmartRyde collaborates with over 25 OTAs, including prominent names like Booking.com, Expedia, Trip.com, Traveloka (Indonesia), and Despegar (Argentina), according to Kimura.

Distinguishing itself from ride-hailing services, SmartRyde offers a comprehensive travel solution. This includes not only airport transfers but also options for sightseeing, alongside airline and hotel bookings. Kimura emphasized the company’s commitment to expanding collaborations with OTAs, travel agencies, and mobility companies.

Funding Allocation and Future Plans

Today, SmartRyde announced the successful completion of a $1.6 million Series A funding round. These funds will be allocated to strengthening system integration with OTAs on the demand side.

Further investment will be directed towards developing a robust booking management system for transportation operators, accelerating digital transformation within the pre-booking transportation sector, and supporting global expansion initiatives, as stated by Kimura.

Investor Details

The funding round was spearheaded by Angel Bridge, with participation from SG Incubate, Yamaguchi Capital, SMBC Venture Capital, Hiroshima Venture Capital, Iyogin Capital, Inventum Ventures, and Optima Ventures.

Expansion Strategy

SmartRyde intends to broaden its reach into key cities and popular tourist destinations. These include Mexico, Spain, Thailand, the Dominican Republic, and select U.S. locations such as Honolulu, Las Vegas, and Miami, as well as further development within Japan, Kimura explained.

Impact of the Pandemic and Recovery

The onset of the COVID-19 pandemic in March 2020 resulted in a substantial decline for SmartRyde. However, reservation numbers have been steadily increasing since December 2020, particularly driven by tourists originating from the U.S., the company reports.

Industry Trends and Market Position

“Changes in travel behavior, such as a preference for avoiding crowded spaces, have emerged due to COVID-19,” noted Ryota Yamaguchi, manager at Yamaguchi Capital. “Consequently, we anticipate further growth in airport transfer services facilitated through OTAs, which serve as the initial point for travel arrangements.”

SmartRyde operates within a global market valued at approximately $10 billion, alongside competitors such as Talixo, Holiday Taxis, Transferz’s Taxi2Airport, and Huangbaoche, as indicated by Kimura.

Investor Rationale

Daisuke Miyazaki, director of SG Incubate (the CVC of Saibu Gas Group), stated, “Our investment in SmartRyde is rooted in our alignment with their mission of ‘contributing to the sustainable development of local communities through transportation.’ We are also impressed by their collaborative business model, which involves partnerships with numerous global entities.”