Picap raises US$2.5 million despite legal uncertainty

Contxto – Despite recent legal troubles, it appears as though Latin America’s largest mototaxi mobility app, Picap, will finally expand its fleet throughout the region.

In Summary

Picap is a Colombian mobility platform that just raised US$2.5 million worth of seed capital from Signia Venture Partners. Fellow contributors included Peter Livington from Unpopular Ventures, Another Company Limited, Fahim Saleh of Adventure Capital, as well as other angel investors.  

Not only is Picap improving mobility but also providing valuable income to drivers, who reportedly earn up to COP$130,000 (around US$39) a day for their services.

This will surely expand and benefit even more people following the seed round investments.

In-Depth

This news may come as a surprise to some of our readers. Some of you may recall that Colombia’s Ministry of Transport declared Picap’s services as illegal in February.

Allegedly, the founders didn’t possess the necessary insurance protection policies for riders or drivers. Moreover, authorities cited yearly injuries and deaths from motorcycle accidents as justification to ban the service.

Based on this landmark funding round, however, it seems like Picap finally has all of its ducks in a row.

According to Picap CEO and Co-founder Daniel Rodriguez, improved mobility options continue to be a hot topic across the region. As populations grow but infrastructures remain the same, people would like to see better transportation options available.

“Latin American cities are demanding mobility solutions that serve more people,” said Rodriguez, whose company has expedited over 5 million mototaxi rides since launching in 2018.

“The Picap platform is here to serve Latin American for whom mototaxis not only represent more flexible transport options but also a form of income.”

– Daniel Rodriguez

Keeping this in mind, Picap “is solving one of the most complex and pressing problems in the mobility space,” according to Linus Liang from Signia Venture Partners. “I’m incredibly impressed with the team and technology it uses to address these issues.”

Based on reports, Picap has over 400,000 registered users and has seen more than 500,000 Google Play downloads. The startup also handles approximately 30,000 trips every day across Colombia. In terms of affordability, Picap services are around 40 percent cheaper than competitors.

-JA