Regional carshare operator ekar is to launch operations in Riyadh following the company’s Series B fundraising totalling USD$17.5 million in June of this year.
Dubai-based venture capital firm Polymath Ventures led the round which includes Al Yemni Group and Audacia Capital.
Vilhelm Hedberg, CEO ekar Middle East said: “Today, ekar UAE services 50,000 bookings per month, a number which we expect to quadruple over the next twelve months as we launch services across cities in Saudi Arabia and other Gulf countries. We have 1,000 ekars in our fleet and over 75,000 members and envision surpassing 10,000 ekars and over a million members by 2021.”
In Saudi Arabia, a young and tech-savvy population of 20 million smartphone users is by-passing traditional car ownership in favour of alternative mobility solutions. In addition, more than 70,000 women in the Kingdom have been issued driving licenses. ekar is launching in Riyadh with 600 ekars and will launch in other cities throughout Saudi including Dammam, Jeddah, Mecca, Medina, and KAEC.
Ali Hashemi, managing director of Polymath Ventures said: “We believe smart systems and shared transport platforms like ekar are the future for sustainable mobility especially in cities with densely populated environments such as Riyadh. We invest with conviction where teams are driving innovation to solve tomorrow’s problems today, and we look forward to helping ekar succeed.”
New members in Saudi Arabia get two hours of free drive time upon registering via the ekar App. ekar is directly integrated with Elm’s Products such as Yakeen and Tamm so these members will be instantly approved after entering a valid email address, mobile number, National/Iqama ID number, and driving license expiry date. Credit and debit cards including MADA are accepted forms of payment in addition to Apple Pay.
ekar’s pricing model ranges from 40 Halalas to 75 Halalas per minute depending on car models, which range from economy to business class vehicles. The average ekar ride is 60 minutes that can cost as little as 24 Riyals, a price which includes fuel and insurance and no monthly membership fees and is a fraction of the cost of ride-hailing services, traditional car rentals or taxis. What’s more, with ekars spread across hotspot areas in Riyadh, including the airport, ekar allows for the benefits of self-drive without the associated high costs of car ownership.
