zūm Wins $150M Contract to Modernize San Francisco School Transportation

San Francisco USD Contracts Zūm for Student Transportation Modernization

The San Francisco Unified School District (SFUSD) has selected Zūm, an innovative startup focused on improving student transport, to overhaul its transportation services. This is evidenced by a newly awarded five-year contract valued at $150 million.

Zūm's Operational Scope and Fleet Deployment

Zūm currently provides a rideshare-based bus service in cities including Oakland, Southern California, Seattle, Chicago, and Dallas. Starting this fall, the company will manage the daily transportation needs of 3,500 students across 150 school campuses within the district.

The company’s fleet consists of 206 vehicles – buses, vans, and cars – strategically allocated to optimize efficiency. Students residing along high-traffic routes will utilize school buses, while cars and vans will serve others. Zūm will also coordinate over 2,000 field trips annually for the district.

Contract Significance and Funding Allocation

This SFUSD contract represents Zūm’s largest win to date, surpassing its existing five-year $53 million agreement with Oakland Unified School District, which commenced in 2020.

The secured funding will be channeled towards vehicle leasing, the recruitment of salaried drivers, enhancements to customer and operational support, and ongoing product development. This information was confirmed by a Zūm spokesperson to TechCrunch.

Cost Savings and Fleet Transition

The implementation of Zūm’s transportation solution is projected to generate annual savings of $3 million for the district, compared to the costs associated with the previous provider.

These savings are attributed to the company’s technology-driven route optimization and operational efficiencies. Zūm has onboarded all drivers previously employed by the former SFUSD provider. The older buses previously in use have been removed, replaced by a modern, connected fleet, slated for full electric conversion by 2025.

Technology and Data-Driven Management

Alongside its vehicle fleet, Zūm provides school districts with a cloud-based dashboard. This platform facilitates operational management, real-time tracking, budget planning, and performance analysis.

“Gaining visibility into student and bus locations was a significant past challenge,” stated Orla O’Keefe, SFUSD’s chief of policy and operations. “We anticipate that families will benefit from Zūm’s student-centered technology, including real-time bus tracking and direct communication with drivers.”

Electrification Goals and System Modernization

The contract includes Zūm’s commitment to assist SFUSD in electrifying its entire fleet by 2025. This aligns with a resolution adopted by the SF District Board of Education to modernize transportation, improve efficiency, and enhance transparency.

Zūm highlights that this partnership marks the first update to SFUSD’s transportation system in four decades.

Virtual Power Plant Initiative

Earlier this month, Zūm announced a collaboration with AutoGrid, a company specializing in energy management and distribution software. This partnership aims to transform Zūm’s electric bus fleet in San Francisco and Oakland into a substantial virtual power plant.

A Zūm spokesperson explained that these contracts are instrumental in realizing the company and AutoGrid’s vision of establishing a 1 gigawatt virtual power plant within the next four years. Oakland Unified and San Francisco Unified are the first U.S. districts to commit to a complete transition to an emission-free electric vehicle (EV) fleet.

Combined, these two contracts will involve approximately 60,000 kWh of charge capacity on Zūm’s EV fleet batteries. This storage capacity could power roughly 47,000 households for one hour during a power outage.

Correction

A previous version of this article incorrectly stated that Zūm would employ a combination of salaried employees and gig workers for the SFUSD contract. The company will exclusively hire salaried employees, despite typically utilizing a mixed employment model.