As the industry ponders a number of new on-demand car-hailing apps getting massive amounts of funding, can these startups really compete with the name recognition of Uber in the long-run?
Here are two companies that announced they raised funding this week, listed in order by the highest amount raised. See previous roundups here.
>>Karhoo raised $250 million in funding from unknown investors and is based in New York City.
Karhoo says it will compete directly with Uber and plans to launch in January in New York City, London and Singapore. The company says its mobile app, a search engine for smartphones that finds and ranks traditional taxis and car services by real-time proximity and price, will make rides as much as 50 percent cheaper than Uber or Lyft during peak periods. Karhoo plans to increase the number of cars on its app from 200,000 to one million by next year and will collect commissions of about 10 percent per ride.
>Car Next Door raised a $1.3 million Series A round from new investors Investible.com and Trevor Folsom.
Car Next Door is a peer-to-peer car-sharing network in Australia and is based in Sydney. Car owners can list their cars and travelers can book a car to rent through a mobile app and Car Next Door offers varying tiers of monthly plans.
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Photo credit: Karhoo is an on-demand car-hailing app that will launch early next year. Karhoo