CommuterClub Offers Londoners Major Discounts on Annual Public Transport Tickets

london-transport

Living in London may be pricey, but then there’s getting around. To decrease the price and the hassle of Londoners’ commutes, CommuterClub is partnering with leading peer-to-peer funder RateSetter to offer major discounts on annual public transport tickets through low-cost payment plans. The campaign, hosted on UK crowdfunding platform Seedrs, is one of the biggest moving campaigns of the week, according to Seedrs’ startup roundup.

commuterclub-logoAs of this writing, CommuterClub is 92.6 percent funded by 219 investors, with a £2,500,000 pre-money valuation. It’s currently raised £509,425 of £550,000 in investment, and is offering an 18.03 percent equity. The company offers the two million London commuters losing out on over £400 million of savings every year by not purchasing annual public transport tickets (instead of monthly or weekly passes) a chance to recoup their money. According to CommuterClub, the company delivers average savings to the customer of £200 annually.

big-ben-london

Here’s how it works: CommuterClub and RateSetter fund the cost of the Annual Travelcard upfront. Commuters then make 11 payments at the same cost as a Monthly Travelcard (including CommuterClub’s 5.6 percent interest rate) for a full year of travel, saving the equivalent of a month of free travel. To minimize credit risk, CommuterClub secured direct integration into the Oyster smartcard infrastructure, allowing it to radically reduce credit risk and thus charge an all-in fee of 5.6 percent. As an added bonus, commuters were able to keep current fares when Transport for London raised prices in January 2015.

petko-plachkov-profile

An “Innovation to Watch,” as the Financial Times described CommuterClub, the company was selected for the FinTech50 2015. The company’s team includes Petko Plachkov, Managing Director and Founder; Imran Gulamhuseinwala, Chairman and Founder; Alain Orset, CTO; Steve Partos, Operations Manager; Will Becker, Advisor; and Sev Furneaux, Front End Design and Development.

 

 

 

 


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