(Bloomberg) -- Gridwise Inc., an app that helps ride-share drivers and delivery couriers keep track of their work, raised $12.7 million in funding, a sign of confidence from venture capital investors that the gig economy will continue to grow even as volatility roils technology companies.
The funding was led by Crosslink Capital with participation from Autotech Ventures, Switch Ventures and Massive VC, among others.
Founded in 2016, the Gridwise app helps gig workers on platforms like Uber Technologies Inc, DoorDash Inc. and Instacart Inc. track earnings and expenses across all of their side hustles and offers tips on how to bolster take-home pay. The app, which is free to download, also connects drivers and couriers to benefits such as dental, vision and car insurance products.
“The pandemic was a difficult time, but it also helped us better understand how to help the drivers who depend on our app to make the most of their work,” said co-founder and Chief Executive Officer Ryan Green. “We understand better than anyone the supply and demand patterns, where drivers are working, which apps, when they stop and the economics of their trips.”
It’s a tough time for most gig economy companies. Uber, Lyft and DoorDash have seen share prices plummet amid rising interest rates and fears of a global economic recession. Sequoia Capital, a venture capital firm that has about 250 portfolio companies, earlier this month laid out the case for a long and drawn-out recession and instructed startup founders to look at ways to conserve cash.
For Gridwise, the cash injection will help the Pittsburgh-based company build more features for its gig-worker user base and expand its enterprise business, Green said. Its access to the fast-growing pool of contract workers has allowed Gridwise to amass a trove of data about the on-demand economy, from what apps gig workers choose to work on, wages, utilization and retention. In turn, the startup licenses that information to insurance companies, city planners, real estate firms and other industries.
“As a transportation-focused fund, we’ve been observing the pain points experienced by gig economy workers very closely and believe that Gridwise’s category leading product is much needed,” said Autotech partner Burak Cendek.
©2022 Bloomberg L.P.