Transportation startups are revolutionizing the way people navigate their daily lives, seeking to make transportation more accessible, more affordable, more efficient and in some cases creating a more sustainable world. The transportation industry is clearly ripe for disruption with companies like Uber and Lyft taking over the ridesharing market and filing to IPO this year. Not to mention the scooter companies that were raising hundreds of millions in the summer of 2018.
Transportation companies typically face a few different types of problems. Companies like Uber and Lyft faced the chicken and egg problem where they needed to onboard both drivers and riders rapidly when expanding to new cities. New scooter and bike sharing companies face problems with distribution, upkeep and maintenance of their scooters and bikes. Recently, Bird has tried to combat these problems by franchising.
Another problem some transportation startups face is their main advantage is entering the market first but they are in danger when larger companies compete. Like Postmates who recently copied KiwiBot from Berkeley. There are now a few more deliver robots, one created by Amazon to deliver packages and a few more startups have entered the space. We will see how the competition plays out in 2019.
Our mission at Arrow is to support impact-driven startups, we look forward to working with startups looking to innovate within the transportation space. We would love to hear from anyone who is solving the problem of transporting goods or people in a unique way.