Honk, the hailing app for towing services raises $18 million

We are all familiar with ride hailing services such as Uber and Grab, using which users can book cabs. A new venture is now trying to build a similar business around towing services. Honk Technologies is attempting to establish an online marketplace for tow truck and road side assistance services.

According to a report from IBISWorld, a market research firm, people spend nearly $6 billion on roadside assistance services each year. The sizeable $18 million round of funding comes over a year after the massive contract Honk finalized with Farmers, the insurance company. This round of funding was led by Altpoint Ventures, with Structure Capital and Venture 51 also participating. The start-up aims to build a network of over 75,000 tow truckers and road side assistance service providers.

Users can find car services nearby using the company’s app and track the location along with the estimated time of arrival of a tow truck. Using these features, Honk is looking to reduce the wait time for tow trucks. Additionally, it also plans to add new services for managing the fleet as well as for insurance and manufacturing companies. With all the data gathered over time from customers, Honk can assess the quality of services and help consolidate the road side assistance industry, leading to an overall increase in customer satisfaction.