Customer-First, Asset-Light Intercity Bus Lines: Our Investment in Kolors
The way we travel has reached an inflection point. Customers demand mobility options that are safe, convenient, and affordable. Airlines are a ubiquitous example of an industry that has established a service model that safely puts passengers in the air nearly whenever they want, at competitive prices. By doing so, airlines have become highly efficient in moving billions of passengers every year.
The same service model could be applied to the intercity bus industry, which currently transports nearly 1 billion passengers in Mexico per year and 5 billion passengers throughout Latin America — an incredible opportunity for revitalization, despite buses being seen as a tired mode of transportation. This holds especially true as traditional operators fall some 20 to 30 years behind the adoption of new technologies. But to be successful in this $100 billion industry, it’s essential for bus operators to dynamically optimize transport for passengers safely, conveniently, and at attractive price points.
Sitting at the intersection of this revitalization — through the adoption of technology, data and customer experience — is Kolors, a Mexico City-based company that is disrupting intercity bus travel, and a welcomed addition to the Toyota Ventures portfolio.
Founded in 2019, Kolors is transforming intercity bus operations and services with a digital platform that creates airline-style technology to increase efficiency, while optimizing customer experience. With an asset-light model, the company partners with small and medium- sized traditional bus operators who drive, maintain and own the vehicles. Kolors handles everything else from route planning & optimization, to scheduling, to sales & pricing, to marketing and customer support. One example is the company’s revenue management software that offers real-time, dynamic pricing to generate more revenue per bus by selling more tickets to passengers on board. This approach reduces costs for Kolors customers, and increases revenue on average by 30% — a win, win!
The opportunity is massive. The intercity bus industry is the mainstay for billions of people around the world, especially in emerging markets like Mexico and other parts of Latin America, where Kolors is currently focusing its efforts. With over 50K buses in operation today, Mexico alone represents a $7 billion opportunity as the number of vehicles in operation continues to increase. Long-term, Kolors plans to expand within the $20 billion Latin American market, and eventually into other markets where buses remain the primary mode of transportation.
Kolors is unlocking a customer-first experience on buses similar to an “airline-on-wheels.” Each vehicle hosts an on-board Kolors bus attendant (or Kolors Ambassador) who’s tablet powered “Crew App” allows the ambassador to help riders check in, buy more tickets, and purchase other ancillary services such as premium seat selection, extra baggage, snacks/drinks, and WiFi/entertainment. This on-board data allows Kolors to understand the needs of passengers to better serve them during each trip.
The payment platform is built for emerging markets, like Mexico and other Latin American countries, which still rely heavily on cash-based systems. To assist in their digital payment transition, the team has a process that allows passengers to buy online or book a ticket and then pay the Kolors Ambassador cash when they board. Kolors aims to bridge the gap from cash to digital payments through the eventual launch of loyalty-based products like a credit/debit card for regular riders.
Nothing gets done without an amazing team, and Kolors is co-founded by serial entrepreneurs Rodrigo Martinez (CEO) and Anca Gardea (CTO and head of product and technology), who together bring a wealth of experience in the bus, airline and travel tech space. To wit, Rodrigo is a third-generation bus operator with family ties to 70 years in the bus industry.
Marking our first investment in Latin America, we are proud to support the Kolors team as they establish a foundational shift in the intercity bus industry through their data driven, customer-first approach. Special thanks to our senior associate, Chris Abshire, who played a key role in driving Toyota Ventures participation in the company’s Series A round, which was led by Up Partners. Other participating investors include Maniv Mobility, Lowercase Capital, Brainstorm Ventures, GOAT VC, Tuesday Capital, EXPA (Garret Camp, Uber co-founder), Bling Capital, K5 Global, Amplifica and Mazapil (Grupo Bimbo founders).
Visit Kolor’s website or the Toyota Ventures portfolio page to learn more.
