Uber Technologies has agreed to acquire transit software provider Routematch, marking the ride-hailing company’s latest move toward expanding its business with public transportation agencies.
The acquisition allows Uber to expand its transit agency customer base and combine the routing, matching and on-demand technology both companies have developed.
“This lets us go so much further so much faster in being able to power public transit agencies,” David Reich, Uber’s head of transit, said in an interview on Wednesday.
Atlanta-based Routematch provides technology to some 550 transit agencies in North America and Australia for fixed-route operations, including payment processing, fleet management, route planning, tracking and scheduling.
Founded in 2000, the company also operates transit agencies’ on-demand scheduled services for wheelchair-accessible or non-emergency medical transportation.
Routematch’s roughly 175 employees are all expected to join Uber, the company’s chief executive, Pepper Harward, said.
Harward said Uber’s presence has challenged transit agencies over the past few years by increasing customer’s expectations for the convenience and speed of a spontaneous trip – prompting many to look for more dynamic, on-demand transportation alternatives.
While nothing will change immediately for Routematch’s existing transit customers, Harward and Reich said the companies were looking at ways to combine Routematch’s technology for fixed-route and paratransit services with Uber’s ride-hailing app down the line.