(Credit: Volvo)Volvo Group Venture Capital AB has invested in Optibus, a software company that develops and provides optimization software for public transportation planning and management.
High quality, sustainable public transportation can be achieved through industry-wide digitalization and vehicle electrification, the companies believe. As part of Volvo Group, the company says Volvo Group Venture Capital’s investment in Optibus will accelerate the digitalization and electrification of the global public transportation sector. The Optibus solution is in use in 1,000 cities in 26 countries across North and South America, EMEA, and Asia Pacific.
“Optibus offers a scalable SaaS solution and has doubled its revenue year over year. We are impressed by the founders, the team culture, and the company’s achievements. We believe the Volvo Group can add considerable strategic value to the continued development of the business,” says Christina Brinck, investment director of Volvo Group Venture Capital.
The bus market is transforming due to digitalization, electrification, and changes in business models. Advanced software solutions are key for cities and bus operators to take advantage of the market development, the companies say. Optibus and Volvo Group will collaborate to develop growth opportunities in the sector.
Volvo says that the transaction has no significant impact on the Volvo Group’s earnings or financial position, but will positively impact sustainability.
Public transportation is becoming more sustainable through varying methods. Following Maryland’s Zero-Emission Bus Transition Act as well as the growing need to stay on top of technology and replace its aging fleet, the Maryland Department of Transportation and the Maryland Transit Administration (MDOT MTA) is planning to move to zero emission buses.
MDOT MTA will deploy battery electric buses during the initial years of the transition and it will also evaluate hydrogen fuel cell vehicles. This will allow the agency to purchase the most up-to-date and smartest technology as advancements occur in the industry, according to the agency.
The Goodyear Tire & Rubber Company has also announced a new step in its journey to fully replace petroleum-derived oils by 2040. For the first time in its commercial truck tires, Goodyear is replacing a portion of the petroleum-based materials used in production of some of its most popular Metro Miler city transit tires with a bio-based soybean oil compound.
