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Heetch raises another $20 million to compete head-to-head with Uber in Europe

Heetch raises another $20 million to compete head-to-head with Uber in Europe
From TechCrunch - January 26, 2018

French startup Heetch has an ambitious goal. The company wants to become the second ride-sharing service in France and in the other European countries where it operates. The startup just raised $20 million from Flix Capital, Via ID, Alven Capital, Idinvest Partners and InnovAllianz. This is the same funding round as last years $12 million round, but new investors joined the round.

In order to stay competitive with Uber, Heetch is a bit cheaper than a normal UberX ride. But drivers still get paid more or less as much on Heetch and on Uber as the startups cut is only 15 percent.

This round shows that Heetchs pivot might be working. The startup first operated as a purely peer-to-peer ride-sharing service. Anybody could become a driver, and there was no restriction on cars.

But a court in Paris forced Heetch to shut down the service back in March 2017. Heetch had already attracted a ton of users (and quite a bit of cash based on multiple sources).

Thats why Heetch started over with a more traditional offering. Now, Heetch only works with professional drivers and accepts rides 24/7. The company will be doubling the engineering team and launching in London with todays funding round.

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