Honk Technologies, a marketplace for towing services for consumers and insurance companies, has raised $18 million in a new round of funding a little over a year after inking a massive contract with the insurance company, Farmers.
The investment was led by Altpoint Ventures, with participation from existing investors Structure Capital and Venture 51.
The company said it would use the funds to build on its network of 75,000 tow truckers and roadside assisters; and add new services for insurers, fleet managers and manufacturers.
Company chief executive Corey Brundage declined to comment on the company’s revenue, path to profitability, or valuation in an interview.
Honk basically applies the same technology ride-hailing uses to the towing business, making trucks more responsive and slashing the time that a customer waits to get help when they need it, according to Brundage.
As we wrote last year, roadside assistance is a huge, fragmented market. According to the market research firm, IBISWorld, customers spend roughly $6 billion on roadside assistance services.
Customers call for a tow directly from HONK via mobile web or the company’s app to find a nearby professional and track the location and estimated time of arrival of their tow truck in real-time. Insurance companies, auto OEMs, and fleets use the company’s transparent platform to reduce wait times by over 50%, improve customer satisfaction, harness their roadside assistance data and receive industry leading net promoter scores, according to a statement.