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Honk, Uber for towing services, amasses $ 18 million

Honk Technologies, a towing services market for consumers and insurance companies, raised $ 18 million in a new round of financing just over a year after signing a contract with the insurance company Farmers.

The investment was led by Altpoint Ventures, with the participation of existing investors Capital Structure and Venture 51.

The company stated that it would use the funds to develop its network of 75,000 tugs and road assistants, as well as new services for insurers, fleet managers and manufacturers.

Corey Brundage, CEO of the company, declined to comment on the company's revenue, its path to profitability or valuation in an interview.

Honk applies primarily to the towing business that the same technology uses, allowing trucks to be more responsive and reducing the time that a customer expects for get help when they need it, according to Brundage.

As we wrote last year, roadside assistance is a huge and fragmented market. According to market research firm IBISWorld, customers spend about $ 6 billion on roadside assistance services.

Customers call for a tow directly from Honk via the mobile web or the business application to find a nearby professional and track location and estimated time arrival of their tow truck in real time. Insurance companies, automotive OEMs and fleets use the company's seamless platform to reduce waiting times by more than 50%, improve customer satisfaction, leverage their data roadside assistance and get net scores of promoters.