Why this startup founder is betting on responsible ridesharing as Houston continues to grow

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Houston was Dallas-based Alto's second market to expand into in 2020. Photo courtesy of Alto

Houston is a car dependent city and Houstonians spend approximately 75 hours a year in traffic. Ridesharing is a safer and more comfortable way to connect people and the places they need to travel. As Houston continues to grow — the city added 250 people a day in the last year — transportation options are crucial to connect people to the places they need to go.

What’s an alternative to driving your own vehicle? Ridesharing.

Ridesharing has many benefits, and it’s crucial that rideshare models both deliver a safe and consistent experience to passengers while supporting the needs of the cities in which they operate. In my view, responsible ridesharing has three parts: safety, fleet optimization, and sustainability.

The most obvious benefit is safety. The most important objective rideshare businesses have is to transport passengers from point A to point B; everyone in the vehicle is precious cargo. If you’re out drinking, for example, you can ditch your personal vehicle and call for a ride. Having drivers that are professionally trained and their mission to make sure you arrive at your destination safely is the most important priority.

I founded Alto with the mission to create a safer rideshare experience for passengers and drivers alike. To me, personal safety while riding or driving should be the top priority of a ridesharing company. Safety is at the core of Alto’s business model, and it’s built into everything we do. At the center of our business is our W-2 employee drivers who are background checked and complete a driver safety training program. Other features include in-car surveillance, telematic tracking, and in-app tracking of your Alto’s position and status. These features are key in creating a safer way to travel as well as building rapport with customers.

Responsible rideshare services also need to have purposeful wait times. Calling for an on-demand ride and receiving a two-minute pick up time is not sustainable and not good for cities. It doesn’t make sense for your ride to arrive faster than an ambulance would. Having such short wait times incentivizes putting more cars on the road and increases the number of drivers driving around a small section of the city waiting for the next ride request. More cars on the road lead to road congestion and even slowing down road lanes that are dedicated to public transit. Even extending a wait time for pick up to 10-15 minutes can greatly reduce the number of vehicles needed to serve customers, alter customers’ approach to hailing a ride, and with a little planning, create greater efficiencies for the city, customers, and the business.

Rideshare fleets that have sustainable assets are essential for acting as a responsible industry in cities and demonstrates a business’s positive impact. For many years we’ve been hearing about the great electric vehicle (EV) revolution for personal vehicles. But what about rideshare fleets? I think ridesharing services will continue to grow as a transportation alternative and I believe that the rideshare industry should prioritize electrification.

It’s not enough to put vehicles on the road without trying to make the industry more sustainable and climate conscious. Houston, an energy sector powerhouse, is leading the green energy transition and I think Houstonians, along with riders all over the country, want to see EV rideshare fleets.

My company Alto, for example, has announced its vision to transition our entire fleet to EVs over the next two years. There are few discussions about the EV transition for fleets and I’m proud that Alto is leading the industry in this regard. This EV vision is one example of how a rideshare company can build a better and more accountable industry, and these steps also give Houstonians a more responsible and sustainable transportation solution.

As Houston continues to grow, Houstonians will need transportation alternatives that meet various trip demands and do not overwhelm or harm the city’s transportation capabilities. Safety protocols, optimized fleets, and sustainability are all essential factors needed in a transportation framework to keep up with Houston’s economic and population growth. To get to that dinner reservation, the game at the Toyota Center, or that conference at the Convention Center, Houstonians should have access to a transportation alternative — ridesharing — to get them to their destination responsibly, safely, and sustainably.

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Will Coleman is the CEO of Dallas-based Alto, a luxury rideshare service that currently operates in Dallas, Houston, Los Angeles, Miami, and Washington, D.C.

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Houston investor on why 2025 will be the year of exits

houston innovators podcast episode 270

Samantha Lewis will be the first to admit that the past few years have been tough on startups and venture capital investors alike. However, as she explains on the Houston Innovators Podcast, the new year is expected to look very different.

"We're super excited going into 2025," says Lewis, who is a partner at Houston-based VC firm Mercury. "For us, 2024 was a year of laying a lot of groundwork for what we believe is going to be a massive year of startup exits and liquidity for the venture ecosystem. We've been hard at work making sure our companies are prepared for that."

Mercury, in fact, has already gotten a taste, with three of its portfolio companies celebrating exits — all with Houston roots. Fintech platform Brassica was acquired by BitGo in February, and Apparatus, founded as Topl in Houston, was acquired early last year. The third deal has yet to be announced publicly.

And it's just getting started, Lewis says. She explains that all of the companies in Mercury's portfolio that are promising — albeit not break-out, to-be-billion-dollar companies — are going to have opportunities to sell in 2025 and 2026.

"What we've started to do — and I encourage everyone to do this if you're working on a startup — is just start to just engage with strategic buyers, investment bankers, and people you think might be a great fit to buy your company," Lewis says, "because we really think that the next few years will be the best liquidity years we've seen in a really long time. And if you're not ready for it, you're going to miss the boat."

In addition to sharing her advice to get "exit preparedness," Lewis explains some specific tech trends she's keeping an eye on in Mercury's "power theme," which she works on directly. This encompasses fintech, blockchain, web3 and more.

Houston private equity firm beats target on first investment fund

fresh funds

Houston-based private equity firm Sallyport has raised $160 million for its first investment fund, exceeding the target amount by $10 million.

The Sallyport Partners Fund focuses primarily on investments in founder- and family-owned businesses, corporate carve-outs and startups in various industries.

The firm’s chairman, Doug Foshee, seeded the fund. He and managing partners Kyle Bethancourt and Ryan Howard started the firm in 2023.

“Sallyport Partners Fund was created to utilize the proven processes our team has developed over time to generate value for like-minded investors on a larger and more impactful scale,” Foshee says in a news release.

Investors in the Sallyport fund include entrepreneurs, business executives and influential Texas families. Aside from Foshee, names of the fund’s investors weren’t disclosed.

“We are deeply committed to working hand-in-hand with management teams to drive transformative growth and generate long-term value,” says Bethancourt. “Our operational capabilities are forged from decades of firsthand experience leading, investing in, and building thriving businesses from the ground up. We have a unique appreciation for the management team’s perspective because we’ve been in their shoes.”

Those shoes have covered some pretty impressive ground:

Foshee is former chairman, president, and CEO of Houston-based El Paso Corp., which owned and operated a 44,000-mile natural gas pipeline network. In 2012, El Paso merged with Houston-based pipeline company Kinder Morgan in a multibillion-dollar deal.
Before Sallyport, Bethancourt was a vice president in the credit division of Blackstone, an investment powerhouse with more than $1 trillion in assets under management. Earlier, he worked at D.E. Shaw & Co., a New York City-based hedge fund with more than $65 billion in assets under management.
Before Sallyport, Howard worked at Platform Partners, a Houston-based private equity firm. Earlier, he worked for the natural resources arm of investment banking giant Goldman Sachs.

Houston university students earn top honors at global energy-poverty competition

Winner, winner

A student-led team from the University of Houston and Texas A&M University took home top prizes at last month's Switch Energy Alliance Case Competition.

Competing virtually against 145 teams from 34 countries, the students, known as The Dream Team, won third place for their plan to address energy poverty in Egypt and Turkey. They were awarded $5,000 in prize money.

The competition challenges student teams to solve real-world energy problems to "drive progress towards a sustainable and equitable energy future," according to the Switch competition's website.

“The Switch competition tackles major issues that we often don’t think about on a daily basis in the United States, so it is a really interesting and tough challenge to solve,” Sarah Grace Kimberly, a senior finance major at UH and member of the team, said in a statement from the university

Kimberly was joined by Pranjal Sheth, a fellow senior finance major at UH, and Nathan Hazlett, a finance graduate student at TAMU with a bachelor’s degree in petroleum engineering.

The Dream Team developed a 10-year plan to address Egypt and Turkey's energy poverty that would create 200,000 jobs, reduce energy costs and improve energy access in rural areas. Its major components included:

Developing rooftop and utility-scale solar farms and solar canopies over irrigation canals
Expanding wind power capacity by taking advantage of high wind speeds in the Gulf of Suez and Western Desert
Deploying cost-efficient technologies along the Nile for rural electrification

“People in the United States should be extremely thankful for the infrastructure and systems that allow us to thrive with power, food and water,” Sheth said in the statement. “Texas went through Winter Storm Uri in 2021—people were without electricity for weeks, and lives were lost. It still comes up in conversations, but certain regions of the world, developing nations, live that experience almost every day. We need to make that a larger part of the conversation and work to help them.”

Team Quwa, a team of four students from the University of Texas at Austin, took home second place and $7,000 in prize money.

“This journey was both intellectually enriching and personally fulfilling,” Mohamed Awad, a PhD candidate at the Hildebrand Department of Petroleum and Geosystems Engineering, said in a statement from UT. “Through the case competition, we had an opportunity to contribute meaningful ideas to address a critical global issue.”

Team Energy Nexus from India earned the top prize and took home $10,000, according to a release from Switch.

Switch Energy Alliance is an Austin-based non-profit that's focused on energy education. The Switch competition began in 2020. Teams of three to four students create a presentation and 15-minute video. The top five teams present their case studies live and answer questions before a panel of judges.

More than 3,200 students from 55 countries have competed over the years. Click here to watch the 2024 final round.