BlaBlaCar Prepares for a Global Journey with $100 Million in New Funding

The long-distance ridesharing startup BlaBlaCar announced today that it raised $100 million during its latest funding round. Launched in France, it operates in 12 countries in Europe and has offices in major cities, such as London, Paris, Madrid, Milan, Moscow and Warsaw. It now plans to expand globally.

“With the new funding we’ll be aiming to make the activity not just European, but global,” said the company in a message to its members.

Currently, BlaBlaCar has 8 million members who share rides between cities, transporting about 1million people a month. It matches those looking to travel long distance with those who are seeking to share the cost of their journey. By using a cost-sharing and not a profit-making model, they avoid the regulatory hurdles often faced by companies like Uber and Lyft.

The popularity of this kind of ridesharing is growing rapidly. The company reports 200% increase of membership year-over-year. It launched in Russia back in March and already has 250,000 verified members in the country.

During an interview for CNN, the company’s COO, Nicolas Brusson, said that the Russian market had brought both big business and big challenges for the startup. He plans to use the lessons learned when expanding in other emerging markets, such as Brazil, Turkey and other Eastern European countries.

As of now, BlaBlaCar’s planned global journey does not include a stop in the United States.

“There are no plans to enter the U.S. market in the immediate future,” said Vanina Schick, Head of Brand & Content Marketing, in a recent interview with Travlpeer.

Nicolas Brusson confirmed these intentions, or the lack there of. The reason? In his CNN interview, Brusson points out that others have tried this activity in the U.S. with a marginal success.

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One of the companies offering similar services in the U.S. is Zimride. Launched by the founders of Lyft, it was sold to Enterprise a year ago but its network is till patchy.

Some companies see this patchiness as an opportunity. Carpooling.com, another extremely successful company for cost-sharing long-distance carpooling in Europe, plans to launch operations in the US within a few months.

Carpooling.com operates in 40 countries and moves 1.3 million passengers a month. According to Odile Beniflah, the company’s Sr. Global Marketing Manager, the car-oriented culture and historic commitment to highway infrastructure make the U.S. a great market for long-distance ridesharing.

Gas is generally cheaper in the U.S. than in Europe, so there might be less of a cost-sharing incentive here. But, when it comes to ridesharing, money saving is not all there is to it.

“There’s a tangible spirit of positive collaboration, a moment of openness and exchange,” according to BlaBlaCar’s note to its members.

The social interaction is a key factor here. The startup’s name even has its explanation in it. A ”bla,” in this case, is a measure of chattiness. People can identify themselves as bla, blabla or blablabla, depending on their aptitude to interact during the ride.

Other companies across the ridesharing marketplace, including Carpooling.com and Zimride, use this social fuel to power their growth as well. They all offer convenient services at a reasonable cost combined with the opportunity to socialize. They are looking to become a transportation option as popular as rail and intercity buses.

“We want to become a reflex for the travelers,” said Schick, hoping that, in the future, people will check ridesharing options just as they do other transportation services every time before they go on a trip.

If investors continue to trust and back ridesharing companies like BlaBlaCar, we might be getting in this habit soon.