Mexico City-based startup, Kolors, is making waves in the transportation industry with its recent acquisition of B2B van pooling provider, Urbvan. The $12 million cash deal combines the strengths of both companies to transform corporate bus travel in Mexico. Kolors, often described as the lovechild of Uber and Southwest Airlines, connects intercity bus riders with bus drivers and aims to create a luxurious and seamless travel experience.
Key Takeaway
Kolors, a Mexico-based startup, acquires B2B van pooling provider Urbvan to enhance its corporate bus travel service. The acquisition expands Kolors’ reach within Mexico, offering door-to-door solutions and connecting business travelers within cities. With strong funding support and a growing client base, Kolors aims to become a leader in ground mass mobility solutions.
Enhancing the Intercity Bus Ecosystem
With this acquisition, Kolors will now offer a door-to-door solution to its passengers, expanding beyond intercity travel. Urbvan, previously owned by Kolors’ competitor Swvl, brings a fleet of over 500 vans and shuttles to the table, along with hundreds of B2B clients. This strategic move allows Kolors to connect business travelers not only between cities but within cities as well, catering to corporate offices, business parks, factories, and distribution centers.
The combined Kolors-Urbvan service will be available in 40 cities across Mexico, significantly expanding its reach. Urbvan, which currently operates in 24 cities, from Tijuana to Cancún, will continue functioning as a standalone app until Kolors launches its integrated app at the end of 2023. The integration of both services will provide passengers with a comprehensive and efficient travel experience.
Driving Growth and Increasing Valuation
Kolors has enjoyed a successful funding journey, raising $20 million publicly and securing investments from Toyota Ventures, Up Ventures, Tuesday Capital, Maniv Mobility, and Uber co-founder Garrett Camp. With the pre-Series B round funding, Kolors was able to acquire Urbvan and double its valuation, now reaching the nine-figure mark. This acquisition is expected to boost Kolors’ revenue, with an estimated $100 million annually within 12 to 18 months.
Mexico’s Industrial Answer
The expansion of Kolors’ service with Urbvan aligns with Mexico’s growing industrial sector. As companies like Tesla establish factories in Mexico, Kolors aims to transport over 5 million passengers by the end of 2023. The company anticipates a surge in business clients seeking reliable transportation solutions, positioning itself to capture the influx of companies onshoring in Mexico to address concerns such as COVID-19 bottlenecks, geopolitical tensions, and supply chain disruptions.
Looking Ahead
Kolors’ ambitious plans extend beyond the borders of Mexico. With the acquisition of Urbvan, the company plans to tap into Urbvan’s existing client base to expand into the United States and other regions by late 2024. This move will solidify Kolors’ position as a leader in next-generation ground mass mobility solutions.
