# We figured out how much money new European unicorn BlaBlaCar could be making

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BlaBlaCar CEO Frederic Mazzella

French ridesharing startup BlaBlaCar has reportedly raised \$160 million (£104 million) in new funding, which brings its valuation to \$1.2 billion (£780 million).

How could a hitchhiking app be worth so much? Hardly anyone uses it. It has only 2 million monthly active users. For comparison, Whatsapp has 900 million.

But some back-of-the-envelope calculations show that BlaBlaCar could actually already be generating surprisingly robust revenues.

The model that BlaBlaCar follows is similar to Uber and other ridesharing services, but the way the service works is slightly different.

BlaBlaCar riders pay their driver a fee, and the company takes around a 12% cut from that amount (which is similar to how Uber works). But what's different about the service is that BlaBlaCar doesn't operate within cities - instead it's all about travel between long-distance destinations. Need a ride from Paris to Brussels, but don't want to pay the expensive train or plane fare? BlaBlaCar is your solution.

Let's take a look at some of BlaBlaCar's numbers to figure out how much money it's bringing in.

BlaBlaCar COO and cofounder Nicolas Brusson told The Financial Times in December that the company has 2 million people who use its services every month. And the company said earlier last year that the average ride charge was around \$25 (£16). Factor in BlaBlaCar's 12% cut and it's bringing in around \$72 million (£46.8 million) every year, assuming that its users take one trip every month.

Here's the sum:

• 2 million rides
• x \$25 each
• x 12 months of the year
• x 12% cut for BlaBlaCar
• = \$72 million in revenues

We used old, conservative numbers to generate that estimate.

An annual revenue of \$72 million is no small figure, but if it were recurring annual revenue it would make a one-time investment of \$160 million look reasonable.