HopSkipDrive Raises $25M for Expansion & Electrification

Back-to-School Boost for HopSkipDrive Amid Rising Concerns

As the new school year approaches, students nationwide are preparing to return to classes. This return occurs during a period of increasing coronavirus transmission rates and escalating effects from climate change. Last year, HopSkipDrive, a rideshare service specifically designed for children, was forced to reduce its workforce significantly due to widespread school closures.

Increased Demand and Expansion Plans

The company now anticipates a surge in demand for its services as parents begin sending their children back to school. To support this anticipated growth and facilitate expansion into 30 additional markets over the coming year and a half, HopSkipDrive has secured $25 million in a Series C funding round.

Investing in Efficiency and Sustainability

Joanna McFarland, CEO and co-founder, explained to TechCrunch that the company remains committed to enhancing its route optimization software. This software aims to improve efficiency and reduce environmental impact for school districts.

Reducing fleet size through optimized routes will contribute to the broader adoption of electric vehicles within the school transportation sector.

Electrification Initiatives and CareDriver Support

The newly acquired funding, originating from Energy Impact Partners, Keyframe Capital, FirstMark Capital, and 1776 Ventures, will also be allocated to electrification initiatives.

These initiatives will focus on assisting HopSkipDrive’s CareDrivers in transitioning to electric vehicles through affordable partnerships with original equipment manufacturers (OEMs).

Currently, 19% of the vehicles utilized by the startup’s CareDriver network are either hybrid or fully electric. These vehicles are owned by independent contractors, similar to the operational model of Uber or Lyft.

A Unique Driver Profile

However, HopSkipDrive distinguishes itself from these larger rideshare companies. Its drivers possess an average of over five years of experience in childcare.

Consequently, the driver base is predominantly female and values the flexibility offered by the platform, alongside the opportunity to contribute to the ridesharing economy in a safe environment.

Modernizing Student Transportation

HopSkipDrive is one of a select group of emerging startups dedicated to modernizing the public school bus system. Zūm, another student transportation service, shares a similar objective but pursues a different market strategy.

While Zūm aims to assume complete control of transportation systems and has set a goal of acquiring 10,000 electric buses by 2025, HopSkipDrive concentrates on addressing transportation needs that fall outside the scope of traditional school bus routes.

Addressing Specific Transportation Challenges

“Prior to the COVID-19 pandemic, we were largely viewed as an alternative transportation solution for districts,” McFarland stated. “We provided individualized transport for students with special needs, those experiencing homelessness, or those in foster care, and this remains our core service.

The pandemic has amplified these needs, and districts are now grappling with a severe shortage of school bus drivers, reaching a critical level. For routes with fewer than 12 students, we offer a cost-effective and environmentally friendly solution.”

Contract Growth and Pandemic Resilience

HopSkipDrive’s complementary approach has enabled the company to secure contracts with over 300 districts across nine states and Washington, D.C. During the pandemic, approximately 150 new contracts were signed.

This year, the company has successfully renewed 100% of its existing contracts, often with price adjustments, according to McFarland.

Safety Measures and Reopening Plans

Despite the continued rise in Delta variant cases, schools are proceeding with reopening plans, making services like HopSkipDrive’s essential.

The company has implemented COVID SafeRide standards, encompassing policies related to sanitization, mask-wearing, and anonymous exposure tracing through the app.

A Shift in Perspective

“I believe we will not see school closures on the scale experienced in 2020,” McFarland concluded. “There is a growing understanding that the negative consequences of keeping children out of school far outweigh the risks associated with in-person attendance.”