Uber acquires Routematch
Uber has announced that it will acquire Routematch, an Atlanta-based public-transport software company. Founded in 2000, Routematch has sold its software for data management, dispatching, trip booking and ticketing to over 500 public transport agencies. The company has had some notable success in helping smaller communities improve their bus service. For example, the company has created on-demand free bus services in Bad Axe, Michigan and in Cecil County, Maryland.
The acquisition is part of Uber’s ongoing efforts to integrate public transport services like route planning and ticket purchases into its app – a response to the criticism that Uber’s success has led to a decline in public transport use. Other efforts in this respect include Uber
- selling its software to the Marin County transportation agency, as the first of many public transit agencies.
- adding transit directions and ticketing to its app in some cities.
- selling train and bus tickets in Denver via the ‘Uber Transit’ function on its app.
- integrating public transportation schedules and direction into the Uber app for a dozen cities.
- planning to acquire Postmates, a grocery and food delivery service.
The exact terms of Uber’s deal with Routematch have not been announced. The acquisition seems focused on finding new customers and new revenue streams for Uber’s Software-as-a-Service programme. New revenue would be most welcome: at its height, the pandemic reduced the demand for ride-hailing by 80%, and the company has had to lay off 25% of its workforce in the US.