BlaBlaCar riding high on fresh cash injection

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BlaBlaCar riding high on fresh cash injection

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It seems venture capital firms think there is profit in sharing as four of them have just invested 73 million euros in the long-distance ride-sharing internet company BlaBlaCar.

The French start-up has garnered investors from Europe and the United States as the sharing economy takes off through companies like Airbnb and Uber.

The VC firms are Accel Partners, ISAI, Lead Edge Capital and Index Ventures.

BlaBlaCar has said it is not yet profitable with the 10 to 12 percent commission it takes on what each passenger pays in set contributions towards travel expenses.

But it now operates in 12 countries and membership is growing rapidly with more than eight million having signed up.

Usage has tripled in the last year with one million passengers having used it in the last month, and it has recorded 3.25 billion kilometres of shared trips.

The influx of investor cash will enable BlaBlaCar to set up in more countries as well as expand by buying out rivals.

And an explanation of the name. For in-car conversational compatibility, taciturn users are rated as blah, chatty ones as blahblah and motormouths as blahblahblah.