Turquoise, the UK merchant bank specialising in energy, environment and efficiency, has announced an investment by Low Carbon Innovation Fund 2 (LCIF2) in RideTandem, forming part of a capital raising round of over £1.75 million.
RideTandem, a mobility-as-a-service start-up, provides affordable and reliable transport solutions for those affected by transport poverty. Founded in 2019, RideTandem works with taxi, minicab, and coach companies to provide commuter services for employers whose staff would otherwise be unable to get to work because of the cost, inconvenience, or complete absence of public transport options.
RideTandem operates outside cities and urban centres, with its coverage currently strongest across the Midlands and East of England. Customers include Royal Mail, Primark, Transport for West Midlands, Direct Table Foods, Banham Poultry, and staffing agencies Manpower, Reed, First Call Contract Services, and Everest People Solutions.
RideTandem’s services enable CO2 emissions savings by creating alternatives to the private car, increasing commuter vehicle occupancy and thereby reducing the number of vehicles on the road. The average RideTandem vehicle carries more than 20 passengers – versus 1.16 for the average commuter car – and operates at more than 70 per cent capacity. Employers can also purchase carbon credits to offset emissions from their workers’ commutes.
Charlie Ramsden, Senior Associate at Turquoise, commented: “RideTandem provides flexible shared transport solutions in areas where existing public transport is limited and, in doing so, addresses transport inequality and reduces transport emissions. In addition, the combination of the current labour shortage and growth in out-of-town commerce creates a strong need for the services RideTandem offers. The applications for RideTandem’s technology are broad and we see the potential for rapid scale in the UK.”
Alex Shapland-Howes, CEO of RideTandem, added: “Too many mobility start-ups have focused only on the challenges in London, New York or Berlin. We’re delighted that LCIF2 shares our commitment to transforming transport options for places that aren’t big cities – where in many cases the existing choice is private car ownership or not making the journey at all.”
LCIF2 is funded by European Regional Development Fund, with the UK’s Department for Levelling Up, Housing and Communities as the Managing Authority.
For more information please visit www.ridetandem.co, www.LCIF.vc and www.Turquoise.eu.
RideTandem is building the next generation of mobility outside cities and towns. Working with local transport companies, RideTandem provides high-quality, affordable, reliable, and sustainable shared transport solutions that connect people in transport poverty with jobs they would otherwise be unable to get to. Since its inception in 2019, RideTandem has created more than £10 million in new earnings for passengers, with employers using RideTandem including Royal Mail, Primark, Transport for West Midlands, Direct Table Foods, Banham Poultry, and staffing agencies Manpower, Reed, First Call Contract Services, and Everest People Solutions.
Founded by Alex Shapland-Howes – previously managing director of education charity Future First – with former Global Innovation Fund investment director Tatseng Chiam and former Hireup CTO Huw McLeod, RideTandem is backed by investors including Zinc VC, Ascension Ventures, the European Space Agency, the Department for Transport, Seedrs, Conduit Connect, the Low Carbon Innovation Fund, and 1818 Venture Capital.
LCIF2 is managed by Turquoise and is a venture capital fund investing in eligible small to medium sized businesses based in England, particularly the areas covered by its local government backers, developing products and services which will have a beneficial environmental impact.
LCIF2 is funded by the European Regional Development Fund (ERDF), following a successful bid by Norfolk County Council and the University of East Anglia. ERDF is an investment programme part financed by the European Union. LCIF2 is part of the UK government’s portfolio of business support products.
LCIF2 has received £10.9m (for co-investment alongside private monies) from the European Regional Development Fund as part of the European Structural and Investment Funds Growth Programme 2014-2020. The Department for Levelling Up, Housing and Communities is the Managing Authority for this funding. Established by the European Union, the ERDF helps local areas stimulate their economic development by investing in projects which will support innovation, businesses, create jobs and local community regenerations. For more information visit www.gov.uk /european-growth-funding.