Australian startup Car Next Door has sold to the US tech giant Uber after a decade in business.
The price of the acquisition was not disclosed.
The peer-to-peer car rental platform first launched in Sydney in 2012 and now operates in all capital cities except Darwin, as well as the Gold Coast, Cairns, Launceston, and Newcastle.
The Car Next Door will report into Uber’s Australian team, but will otherwise operate independently, with its existing leadership team remaining focused on building and scaling their technology in more cities.
The vehicle -sharing marketplace has been heavily backed by car brand Hyundai over the years amid several million raised in a series of funding rounds. The South Korean manufacturer most recently invested $6.2 million in Car Next Door in 2019.
Uber ANZ general manager Dom Taylor said 2022 marked 10 years since both companies first began in Australia.
“A lot has changed in that time but one thing has stayed constant: a shared vision that we need to make transport not just safe, convenient, and affordable – but also sustainable,” he said.
“Over the last decade, Uber has created shared rides options like Uber Pool, invested $800 million globally to drive electric vehicle uptake, and integrated micro-mobility, and public transport options into the Uber app.
“What our app users haven’t had though, is the option for those mid-range and longer-distance trips. This deal will change that.”
Car Next Door co-founder and CEO Will Davies said working with Uber gave them the ability to scale up their ambitions.
“We know that many of our members are already combining carshare and rideshare with shared bikes and scooters, walking and public transport for a mobility mix that suits their lifestyle,” he said.
“We’re hearing from more and more people that they no longer feel the need to own a car, because getting transport on demand saves them money and hassle.
“We see this deal as a big step towards making car-free or car-light living accessible to more people in more places and freeing up space for people, not parking.”
Uber, which is listed on the New York Stock Exchange, has a market capitalisation of around A$100 billion.
This article was originally published on Startup Daily.