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Omio https://www.omio.com, until its rebranding last year called
GoEuro, competes with Britain's Trainline in European rail
travel, but also offers journey planning and ticketing for buses
and flights via a smartphone app.
Naren Shaam, Omio's Indian-born, Harvard-educated founder and
CEO, said the U.S. and Canadian markets were a logical next step
after the acquisition in October of Rome2Rio
https://www.rome2rio.com, an Australian specialist in route
discovery.
"There are two fundamental pillars that drive us as a company.
The first is global inventory for transport is not on a single
product," Shaam, 37, said in an interview at Omio's headquarters
in Berlin's fashionable Prenzlauer Berg district.
"The second pillar that drives us is that travel inherently is
connected - and the products and the technology solutions today
don't offer a connected experience."
It is partnering initially with rail operators Amtrak, VIA Rail
Canada; airlines Delta and United, and bus companies OurBus and
Academy, with more expected to follow.
Shaam moved to Berlin eight years ago to found the business and
now has a following of 27 million monthly active users. Omio,
like many start-ups, does not publish financial results.
It has attracted $296 million in investor funding. The last
round in October 2018 was led by Swedish investor Kinnevik,
Singapore sovereign wealth fund Temasek [TEM.UL] and
Asia-focused private equity fund Hillhouse Capital.
AGGREGATOR VS PROVIDER
Omio follows German travel app FlixMobility into North America
but the two take different approaches. It is an aggregator
whereas the Munich-based startup works with bus and train firms
operating under its brand.
Shaam said the value in the business is created by its ability
to manage complexity in ground travel, which doesn't have
standardized procedures as in the airline sector.
"It's a full-service solution. It's not just a meta search
engine that is discovery based," he said.
In the first stage of its North American expansion, Omio will
offer ticketing for more than 23,000 train and bus routes, as
well as flights. It estimates the "addressable" market there at
$138 billion for air travel, and $8 billion for ground.
Shaam is counting on North American travelers, who make up 10%
of Omio's user base, becoming early adopters. And, he says,
offering a choice of travel options along major corridors - such
as the U.S. East Coast - makes good sense.
(Reporting by Douglas Busvine; editing by David Evans)
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