Shuttle and ride sharing service ZipGo has acquired a 100% stake through cash-and-stock in Pune-based shuttle bus operator Supreme Trans Concepts (STC), the company confirmed to MediaNama. The acquisition will help ZipGo to start an intercity bus service between Pune and Mumbai, and add electric buses to its fleet, its statement said. STC’s cofounder Prashant Mohite will continue as CEO of STC and become executive VP at ZipGo.
Currently operating in Bangalore, Hyderabad, Jaipur, and Mumbai, ZipGo will now offer its services in Pune, where STC has two consumer services: MetroZip (shuttle for employees) and CityZip (shuttle for employees who work in the Magarpatta IT Park) along with a B2B employee transportation services (ETS) business. ZipGo’s co-founder and CEO Jitender Sharma told MediaNama that STC would continue to offer these services in Pune.
MetroZip and CityZip have 36-seater AC buses which operate in Hinjewadi and Magarpatta in Pune, while the ETS arm has (27-42 seater) buses as well. MetroZip will now move under the ZipGo brand.
Supreme Trans Concepts was founded in Pune in 2014 and claims to have 10,000 users (on its website) on its routes. Its investors are facilities management company Supreme Facility Management and Grow India Capital (now Windrose Capital). It operates 270 buses, employs 200 people and claims to have 23,000 users (according to ZipGo’s statement) everyday. STC also has a revenue run rate of Rs 42 crore per year.
ZipGo and STC combined are the largest technology B2C bus company in India, Pritesh Gupta, co-founder and COO of ZipGo said, adding, “on all metrics including cities, fleet size, employees, rides per day, and most importantly, revenues.”
According to an ET report, Essel Green Mobility had put in Rs 300 crore in ZipGo in August this year.
In early 2016, ZipGo had temporarily suspended its operations in Bangalore, stating that it was sorting the (regulatory and permit) issues out with the Bangalore Regional Transport Office (RTO). It had to suspend its services after 4 of its vehicles were seized by the state transport department for not having stage carrier permits and violating rules in December 2015. Following the suspension, ZipGo launched a Change.org petition asking its users and Bangalore citizens to help it reinstate the business, stating that it did not violate any laws and regulations.