While the Bengaluru-based company declined to disclose the investment details, sources said Unitus has pumped in about $1 million (about Rs 6.8 crore).
Instead of hiring cars/cabs, DriveU allows users to hire drivers on the go, DriveU said, adding it will use the funds to expand operations to more tier I and II cities.
DriveU commenced its operations in July 2015 and is currently offering services across 4 cities — Bangalore, Chennai, Mumbai and most recently in Delhi.
Interestingly, Shastry was also the first angel investor at TaxiForSure, a company that was later acquired by Ola.
A fare of Rs 99 per hour is charged and there is no surge pricing feature on the DriveU app, helping users avoid peak-hour charges.
“We ensure seamless user experience by implementing the best practices in technology, driver verification, training methods and on-road commute experience. Customer safety is of utmost experience to DriveU and we follow stringent policies to get the drivers verified by police and RTO before registering them on the system,” he said.
It has about 250 drivers on board but aims to ramp up the number to one lakh in the next 2-3 years.
As of January this year, DriveU has served over 15,000 trips to over 6,000 customers, of which over 60% are women.
Splurging huge amounts on customer acquisition and driver retention, Ola and Uber run on the philosophy that customers can avoid using their own cars and use taxis instead at an affordable cost.
However, the potential market for DriveU still remains large as India is the fifth largest passenger-car market globally, he said.