Taxelco raises $17 million to grow its electric Téo Taxi fleet and expand business model by 2019

Thanks to newly announced financing, those green electric taxis seen around town will soon be expanding to a fleet of 350 vehicles and more than 1,000 drivers.

Taxelco, a Montreal-based transportation company founded in 2015 by XPND Capital, has raised $17 million in additional financing. The investment comes from XPND as well as Caisse de dépôt et placement du QuébecFonds de solidarité FTQ and Fondaction CSN.

The capital will enable the expansion of Téo Taxi‘s fleet of electric cars with the purchase of 200 additional vehicles and the hiring of approximately 600 drivers. The money will also accelerate its technological development and set up a new operations network with 20 IT and quality assurance professionals, and the expansion of its recharging network.

Taxelco is also the owner of (non-electric) taxi companies Taxi Diamond, acquired in 2016, and Taxi Hochelaga. The new technology developments already in place at Taxelco will soon be implemented at Taxi Diamond and Taxi Hochelaga as Taxelco works to become the North American industry reference and expand its business model beyond Montreal in 2019.

“Our investing partners are reaffirming their confidence in Téo Taxi and its vision of reinventing the taxi industry. Their substantial investment will enable Téo Taxi to provide a service that can finally meet Montrealers’ expectations,” said Alexandre Taillefer, Taxelco’s founder and XPND Capital’s chief associate.

To keep up with the expansion, Téo Taxi needs to hire more than 600 drivers this year. The company is promising to help driver candidates obtain their 4C permits by providing 35 hours of paid training, and once trained, Téo offers drivers a salary and benefits — including paid vacations, RRQ and CNESST contributions.

“The pilot project allowed us to validate the demand and test Téo Taxi’s business model. This funding will now enable the company to accelerate its growth. By combining innovation with sustainable transport, Taxelco fits perfectly into the Fonds’ strategy of supporting Québec innovative companies,” said Normand Chouinard, Senior Vice-President, Investments, Fonds de solidarité FTQ.

READ ALSO: Taxi industry receives $44 million funding from Quebec government

“From its inception, Téo Taxi has demonstrated that it is possible to have a 100% electric taxi fleet. As a result, the entire industry has been changed for the better. Sustainable development is part of our mission at Fondaction, and we are proud to support Taxelco in expanding its business model,” said Geneviève Bouthillier, Investment Assistant, Fondaction.

So next time you’re running late and need to grab a cab, why not go with the sustainable option for the same price?

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