zūm to Add 10,000 EVs to Student Transportation Platform

Zūm Secures $130 Million in Series D Funding

Zūm, a company specializing in optimized transportation solutions for students, has successfully completed a $130 million Series D funding round. This investment elevates the company’s total funding to over $200 million.

The newly acquired capital will be allocated towards the expansion of Zūm’s vehicle fleet. Specifically, the company plans to integrate 10,000 new electric buses, vans, and cars, aiming for a fully electric fleet by the year 2025.

Virtual Power Plant Initiative

Recognizing the potential of parked vehicle batteries during periods of low energy demand, Zūm has established a partnership with AutoGrid. This collaboration leverages AutoGrid’s energy management software to transform the fleet into a substantial virtual power plant.

This innovative system will allow Zūm to contribute energy back to the power grid, enhancing grid stability and promoting sustainable energy practices.

Investment Details and Expansion Plans

The Series D funding round was spearheaded by Softbank Vision Fund 2, with contributions from existing investors such as Sequoia, BMW i Ventures, and AngelPad.

This funding arrives shortly after Zūm secured a $150 million contract to modernize the transportation services for the San Francisco Unified School District (SFUSD).

Zūm intends to utilize these funds to broaden its reach into new markets and school districts nationwide.

Reimagining School Transportation

Despite being the largest mass transit system in the nation, school transportation has seen limited advancements in recent decades.

Over 26 million students rely on school buses daily, many of which are older, diesel-powered vehicles operating on inefficient routes.

Zūm’s service seeks to modernize this system by strategically deploying a diverse fleet of buses, vans, and cars to optimize transit times and cater to students with unique requirements.

The company’s advanced fleet management program further enhances logistical efficiency.

CEO Statement

“Initially, our focus was on providing parents with a direct means to schedule rides for their children,” stated Ritu Narayan, CEO and co-founder of Zūm. “However, we quickly identified an opportunity to broaden our impact and serve the entire school transportation ecosystem.”

“We are now taking a significant stride towards resolving the long-standing issues within school transportation, believing that schools, parents, students, and drivers all merit a superior experience.”

Cost Savings and Market Growth

School transportation represents a substantial expense for many districts. By addressing inefficiencies such as convoluted routes and inflexible schedules, Zūm has demonstrated an ability to generate average annual savings of $3 million for districts like SFUSD.

Currently, Zūm collaborates with 4,000 schools across California, Seattle, Chicago, and Dallas.

The company plans to extend its services to 12 additional states in the coming years, including Arizona, Florida, Virginia, Oregon, and New York, with Washington, D.C., identified as a future target.

Investor Perspective

Andrew Straub, investment director at Softbank Investment Advisers, commented, “Through the application of data and technology, Zūm is revolutionizing school transportation by delivering enhanced services, improved efficiency, and greater sustainability, all while prioritizing the safety of children.”

“We are particularly impressed by the immediate positive impact Zūm has had on school districts that have fully integrated its service, notably the significant cost reductions achieved.”