The Caisse de dépôt et placement du Québec (CDPQ), Fonds de solidarité FTQ, Fondaction CSN, and XPND Capital are investing $17 million in growth funding in Taxelco.
The new funding will enable Téo Taxi to accelerate its technological development, to purchase 200 electric vehicles, to hire approximately 600 drivers and support workers, 20 information technology (IT) and quality assurance (QA) professionals, to set up in an ultra-modern operations centre, and to expand its recharging station network.
Founded in 2015 by XPND Capital and owned by XPND funds, Taxelco is a taxi company consisting of Montréal’s three largest taxi companies – Taxi Diamond, Taxi Hochelaga and Téo Taxi.
XPND Capital closed its second fund, XPNDCROISSANCE, a $75 million fund in March 2016 with committments from CDPQ ($15 million), Fonds de solidarité ($10 million), Fondaction ($5 million), Investissement Québec ($15 million) and other investors.
photo credit: Taxelco
Taxelco announces Phase 2 of its financing
Private Equity Montréal, February 7, 2018
Thanks to this major investment by its current partners Téo Taxi will expand its fleet to 350 vehicles and more than 1,000 drivers.
Taxelco’s institutional and private partners are investing $17 million. The Caisse de dépôt et placement du Québec, the Fonds de solidarité FTQ, Fondaction, and XPND Capital are investing this capital that will enable Téo Taxi: to accelerate its technological development, to purchase 200 electric vehicles, to hire approximately 600 drivers and support workers, 20 information technology (IT) and quality assurance (QA) professionals, to set up in an ultra-modern operations centre, and to expand its recharging station network.
Taxi Diamond and Taxi Hochelaga continue their modernization.
The suite of technology developments already in place at Taxelco will also be deployed soon at Taxi Diamond and Taxi Hochelaga, to the benefit of their partner-drivers and clientele. Taxelco intends to become the North American industry reference and to export its business model beyond Montreal starting in 2019.
Quotation by Alexandre Taillefer, Taxelco’s founder and XPND Capital’s chief associate: “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.”
Strong demand for Téo Taxi
Recent regulatory changes, and the measures as a whole, will promote enhanced optimization in the delivery of reliable and timely service. Téo Taxi is projecting achieving profitability during the current year.
Quotation by Normand Chouinard, Senior Vice-President, Investments, Fonds de solidarité FTQ: “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.”
Téo Taxi intensively recruiting
With the expansion of its fleet, Téo Taxi needs to hire more than 600 drivers this year. Téo Taxi is seeking men and women with a passion for customer service, and is helping driver candidates obtain their 4C permits by providing 35 hours of paid training.
Unlike traditional taxi industry drivers, Téo Taxi’s are salaried and provided with benefits (paid vacations, RRQ and CNESST contributions).
Quotation by Christian Dubé, Senior Vice-President, Québec, Caisse de dépôt et placement du Québec:
“With extensive operational experience acquired in its pilot project phase, the conditions are now right for Téo Taxi to ramp up its growth. This new financial support from la Caisse recognizes the company’s innovative character and distinctive positioning in urban transportation, We are pleased to support Téo Taxi in accelerating its technological development, enhancing its service offering and redefining its already changing industry.”
Quotation by Geneviève Bouthillier, Investment Assistant, Fondaction: “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.”
The Téo Taxi division of Taxelco is reinventing taxi service in Montréal. Through a user-friendly mobile application, a high-performance technology platform, and a fleet of entirely electric vehicles, Téo Taxi offers its customers a completely innovative, comfortable and worry-free user experience while, at the same time, contributing to a reductions in greenhouse gasses. Join in on the conversation on Facebook and Twitter using the hashtag #TéoMTL. For more information, check out the website: www.teomtl.com.
Taxelco is a taxi company founded in 2015 by XPND Capital, consisting of Montréal’s three largest taxi companies – Taxi Diamond, Taxi Hochelaga and Téo Taxi. By offering its drivers better working conditions and making optimal use of information technologies, Taxelco wants to position Montréal as a green and forward-looking city with urban transport modes that are vectors of economic development, and reflect the company’s unique and innovative character.
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Taxelco Communications and Marketing Manager