Volvo Group Venture Capital has announced that it is investing in Optibus, a cloud-native AI platform, to advance bus electrification and the digitalisation of the public transport industry.
Volvo said the investment is part of its commitment to sustainable bus fleets and more efficient transport.
Last month, Optibus’ worth rose to US$1.3bn (£1.85bn), making it the first unicorn company dedicated to public transportation.
Using optimisation algorithms, artificial intelligence and cloud computing, Optibus develops and provides a software platform for digitalising the processes involved in public transport planning and management.
The software is designed to streamline financial operations, improve passenger services and support a smooth transition to fleet electrification.
Volvo said it sees electrification and sector-wide digitalisation as key to the future of sustainable public transport.
Despite this, reportedly only 20% of European city buses are electric and only 2% are in the USA.
“We are honoured to receive this strategic investment from Volvo to enable greener, more efficient public transportation operations through better software infrastructure,” said Amos Haggiag, CEO and co-founder of Optibus.
“Between Volvo, as a global OEM with decades of auto industry expertise, and Optibus, as an agile, quickly scaling SaaS company, this relationship spurs the synergy needed to advance digitalisation and more sustainable fleets.”
According to Volvo, the bus market is transforming due to digitalisation, electrification and shifting business models.
Thus, the company said it sees advanced software solutions as key for cities and bus operators to make the most of changes in the market.
The number of cities using Optibus has more than doubled in the past year, growing to 1,000 cities in 26 countries across North and South America, EMEA and Asia Pacific.
