Hotwire, the online rental car marketplace, has raised $1 million from investors, including hedge fund manager and former New York mayor Michael Bloomberg, to help expand its fleet of vehicles in New York, according to a press release from the company.
The company announced it had raised $5 million from the investment community, including Andreessen Horowitz, Fidelity Investments, and the Draper Fisher Jurvetson Fund, among others.
The funding comes on the heels of the $3 million raised last year from Andreessen-Horowitz, according a press statement.
“We’re delighted to be a part of this historic investment in the future of car rental,” said CEO Kevin O’Connor in a press conference.
“Our cars are the future and we want to help build that future.”
The company has more than 2,500 rental cars available for use by customers who want to rent from one of Hotwire’s more than 700 rental partners.
In addition to Hotwire cars, the company offers rental cars for hire.
A $1k deposit will go toward a $5k down payment, which allows users to rent for up to a year.
“Hotwire is the world’s leading car rental marketplace,” O’Brien said.
“Over the last year we’ve seen unprecedented growth, with a record 25% increase in car rentals.
We believe our fleet of rental vehicles will allow our customers to live out their dream of owning their own car.”
The companies new partnership is a significant milestone for the company, which has had to deal with the fallout from Hurricane Sandy, a devastating storm that hit New York and New Jersey last summer.
It’s unclear when the company will begin rolling out its new rental cars to customers.
“Today’s announcement is the culmination of a long-term strategic partnership,” O,Connor said.
Hotwire also plans to add more affordable car rental options, like those offered by the CarRentalNow.com and HertzCarRental.com platforms, as well as new rental car options to the marketplace, including the ZipCar and Lyft rental cars.
“With the help of our investment partners, we are committed to driving a world-class rental industry, which we hope will drive new business and new revenues,” O said.
The Hotwire investment comes on top of $2 million in new funding the company received in August.
Last year, the firm announced plans to expand its rental car platform and expand its mobile app.
The news comes as the company faces a slew of criticism from drivers and investors who have accused the company of unfairly charging higher rates for car rentals, which is against the law.
HotWire’s CEO has denied the allegations.
“It’s not fair,” O’s statement said.