DALLAS — Editor's note: This story was originally published in the Dallas Business Journal here.
Dallas-based ride-hailing startup Alto Experience Inc. has launched a small electric vehicle fleet, which it plans to quickly grow.
Alto has partnered with Kia America Inc. to put 12 2024 Kia EV-9s on the streets of Dallas. The fleet launched April 22, the company confirmed. It could grow the fleet to more than 100 by the end of 2024.
Not much information was disclosed about the Kia partnership but Alto CEO Will Coleman said his company has a "long history of working with [original equipment manufacturers] to obtain favorable rates for vehicles given our fleet scale across the U.S."
In July 2022, Coleman told the Dallas Business Journal that Alto was investing in EV charging infrastructure in hopes of converting its fleet to electric vehicles. At the time, the company had not yet found the right EV to fit its needs.
Alto offers a service is similar to Uber and Lyft, but the Dallas company uses a membership model that generates upfront revenue. Another major difference is that instead of using contract drivers, Alto employs them as W2 workers and provides safety and driving training. Alto also owns its fleet of SUVs, which can be found around Dallas-Fort Worth, and as the one of the curbside ridesharing services at Dallas Love Field Airport.
Founded in 2018, Alto has raised $127.6 million, with a $22 million series C round in September 2023. The company also brought in nearly $2.8 million in a crowdfunding campaign through StartEngine Capital LLC, a round that closed April 29, the company said.
After expanding into the San Francisco and Palo Alto markets in 2022, Alto exited those areas in 2023 to "reallocate resources to higher growth markets." Alto said it's seen strong demand and growth in Los Angeles, Miami, Dallas, Houston and Washington, D.C.
Alto also offers concierge services such as a courier services, food delivery and shopping delivery.
Editor's note: An earlier version of this article inaccurately described Alto as the exclusive ride-hailing service at Dallas Love Field. Rather, the company, having been awarded a contract from the city, is the only rideshare service to be able to provide curbside pickup instead of meeting passengers in the designated rideshare zone.
More Texas headlines:
