Taxelco, a transportation holding company founded by Canadian growth equity firm XPND Capital, has acquired Taxi Diamond, the largest taxi fleet in Montréal. No financial terms were disclosed for the deal, which will see Taxi Diamond’s existing management team remain in place. Taxi Diamond will join two other Taxelco brands: Taxi Hochelaga, acquired last year; and Téo Taxi, an electric taxi service that recently secured financing from XPND. The brands currently manage a combined fleet of 1,720 vehicles. XPND is led by Managing Partner Alexandre Taillefer. The firm closed its second fund, XPNDCroissance Fund, at $75 million in March.
Taxelco announces the acquisition of Taxi Diamond, a major transaction that will transform the taxi industry in Montreal
MONTREAL, Aug. 9, 2016 /CNW Telbec/ – Taxelco announced today that it has purchased Taxi Diamond, the biggest taxi fleet in Montreal. This transaction, which combines the strengths of two innovation-focused players, will allow Taxelco to step up its modernization strategy to meet the needs of Montrealers looking for safe, fast, and efficient professional taxi service which is available round the clock everywhere on the island of Montreal.
The complementary service offerings under the Taxelco umbrella will meet the needs of all customer segments across Montreal. Taxi Hochelaga operates in the east-end of Montreal and specializes in paratransit. Taxi Diamond is the biggest taxi fleet available in the central and western areas of the city and is also the leading provider for corporate and institutional clients. Téo Taxi is the first all-electric taxi service in Canada offering a unique experience to users and drivers.
This acquisition will allow Taxelco to implement its ”know-how” on a large scale, with 1,720 vehicles offering the same reliable service to Montrealers under three different brands.
“A year after acquiring Taxi Hochelaga, and eight months after launching Téo Taxi, we’ve gained key strategic knowledge and learned quite a few lessons,” pointed out Alexandre Taillefer, senior partner at XPND Capital and Taxelco founder. “Through innovative management of our operations, we put customers first while at the same time providing a favorable work environment for our taxi drivers.”
“New technology and better taxi fleet management are the keys to transforming the industry,” said Marc Petit, the CEO of Taxelco. “We want to offer the owner-drivers and independent contractors who work with Taxi Hochelaga and Taxi Diamond a modern, clean, and environmentally friendly fleet so that they can provide Montrealers with consistently top notch service that is safe and efficient.”
Taxi Diamond’s experienced management team will remain in place. Like Taxi Hochelaga, Taxi Diamond will retain its agency model and drivers will continue to be self-employed. Taxi Diamond’s service code will be improved and standardized with Taxelco’s.
“This acquisition unites two companies recognized for their forward-looking approach” said Dominique Roy, the CEO of Taxi Diamond. “Taxi Diamond has always relied on innovation to set itself apart from the competition and it has now one of the best call centers in the industry. We were also the first taxi company to launch a mobile app, equip vehicles with GPS, and accept electronic payments. We are very happy to be joining Taxelco.”
Taxelco was launched by XPND Capital in 2015. It owns Taxi Diamond, Montreal’s leading taxi company, Taxi Hochelaga, and the latest arrival, Téo Taxi, the most innovative player in the taxi business. By electrifying the industry fleet and optimizing the use of information technology, Taxelco seeks to position Montreal as a green and avant-garde urban hub where transportation methods drive economic development and mirror the city’s unique and innovative character.
Photo courtesy of Taxi Diamond