Nobel Peace Prize Laureate and former American Vice President Al Gore has invested $10 million in the Israeli start-up company Green Road Technologies Ltd. The money comes from Gore’s cleantech fund, Generation Investment Management LLP. In making this move, Gore joins other big names who have invested in the Israeli company such as Sir Richard Branson’s Virgin Green Ventures, Balderton Capital, and DAG Ventures.
So what exactly is this Israeli start-up doing that is generating so much buzz? Green Road Technologies has figured out a way to make driving both safer and greener. The company has created the “GreenRoad 360 service” that provides drivers and their fleet managers with real-time feedback on the manner in which a person is driving. When the driver starts the day, the device shows a green light. If the driver displays erratic driving such as slamming on the breaks or swerving, the light becomes yellow. If the reckless driving continues, the light turns red. While it may sound simple, the algorithms can analyze more than 120 different driving maneuvers providing life-saving, and money-saving, feedback to the driver’s supervisor.
Green Road Technologies says their customers can experience a 50% reduction in accident related costs and a 10% reduction in fuel costs. Billions of dollars could be saved every year by improving driving behavior, the most significant factor in determining fuel efficiency. By improving driving behavior, this Israeli start-up is hoping to make companies more efficient, more green, and safer. According to TechCrunch, “fuel savings just from driving less aggressively can save a company some $300 per vehicle per year, and when you factor in crash savings it’s more like $1000 to $4000 in savings per vehicle per year.”
The company has its headquarters near San Francisco as well as its 90-person research and development center in Or Yehuda in Israel. Chief of Safety Hod Fleishman, one of the company’s founders, told Globes that he believes that the company could become profitable very soon. He explained, “This may be our final financing round.”
For more information on how the technology works, see Green Road Technology’s website.
