Direct Global is Proud to Announce Fare.Coop is Kicking off $26M Series A Funding Round, Eyeing Expansion into Seven Major Cities with its Revolutionary Cooperative Ride-Hailing and Delivery Model
TORONTO, June 26, 2023 — Direct Global’s pioneering efforts in spearheading and financing multi-stakeholder cooperatives are reaching new heights as they announce the start of Fare.Coop/Local Driver Co-op’s Series A funding round. The ambitious goal is to raise $26 million, enabling the expansion of their innovative services to major urban centers like Los Angeles, New York, Toronto, and others. This expansion aims to reach tens of millions of consumers through Fare.Coop’s disruptive federated cooperative model, which is comparable to the transformative impact of VISA on the financial industry in the late 1960s, leading to the largest IPO in American history in 2008.
Fare.Coop has achieved significant milestones, including successful pilot projects in Canada and the enlistment of nearly 40,000 drivers and delivery couriers across the United States and Canada. This growth reflects the increasing demand for a fair and equitable gig economy.
To further enhance their services, Fare.Coop has strategically partnered with #driversunite, an alliance advocating for the rights of independent workers and representing millions of drivers globally. They have also joined forces with the Rideshare Drivers Network from Australia, a co-founder in the International Alliance of App-Based Transport Workers, representing drivers from various countries. These partnerships pave the way for Fare.Coop’s launch in multiple markets.
Fare.Coop sets itself apart by offering not only exceptional service but also equitable pricing. While traditional platforms charge businesses fees ranging from 20% to 35%, Fare.Coop operates with a modest 5% fee structure. This reduction enables restaurants to significantly lower their online prices, benefiting both businesses and consumers.
Moreover, Fare.Coop’s ride-sharing service is priced approximately 20% lower per mile/kilometer compared to competitors, ensuring drivers receive 90% of their earnings. By granting drivers equity, Fare.Coop empowers them to finance and own autonomous vehicles in the future. This commitment to fairness and equality positions Fare.Coop as a formidable contender against conventional gig economy platforms.
With its groundbreaking approach and remarkable achievements, Fare.Coop is now seeking Series A funding. Direct Global, a founding partner of Fare.Coop, is optimistic that investors will recognize the platform’s immense value and untapped potential.
“Boasting an exclusive alliance with #driversunite, which represents millions of drivers, and comprehending that traditional firms spend thousands per driver for acquisition, Fare.Coop already has a fully operational platform with close to 40,000 registered drivers in Canada and the USA and unparalleled customer and vendor ratings. This potent combination presents a compelling case for discerning investors. It’s clear that incumbent players would be reluctant to erode their margins to compete with our low pricing structure, given their high overheads. Moreover, they are unlikely to share equity with their drivers, a step Fare.Coop has already taken to ensure the future for the gig workers. Considering these factors, Fare.Coop emerges as the clear investment of choice,” asserted Ahmed Attia, CEO of Local Driver Co-op.
Direct Global’s endorsement by the United Nations’ Sustainable Development Program further solidifies their commitment to fulfilling Sustainable Development Goals #8, #9, and #11, focusing on inclusive economic growth, resilient infrastructure, and sustainable cities.