App heralded as ‘Uber for tow trucks’ raises $24 million

An app touted as the “Uber for tow trucks” has raised $24 million in a new round of funding overnight as insurance companies look to capitalize on an idea that could change the entire industry.

Honk, a US-based start-up currently only operating in America, links tow truck associations with insurance companies to offer 24/7 roadside assistance controlled through a smartphone app.

Just like Uber, users can request a tow truck around the clock and have the nearest operator connected to them, provided they are interested in taking the job. Users can also rate a tow truck driver based on speed, customer service and pricing.

Honk offers services such as towing, changing tyres, delivering fuel and assisting with drivers who have been locked out of their vehicle.

The start-up aims to replace annual roadside-assistance membership programs many Americans are signed up to, which often incur extra costs when requesting a tow truck.

Just like Uber, Honk gives drivers an immediate quote for the service they are requesting, which users can then accept or decline.

Honk CEO Corey Brundage said the latest round of $24 million funds will help the app expand its network of tucks using the service to 75,000.

Read More of this Article at 9Finance