Why We Invested: Circuit

_{Image courtesy of Circuit}

MKB is thrilled to announce our lead investment in Circuit’s Series B funding round. Circuit is transforming urban transportation through its electric microtransit service, offering cost-effective last-mile solutions that reduce congestion and bridge transit gaps across major U.S. cities. At MKB, our experience partnering with leaders in shared mobility has shown that scalable, financially sustainable models are essential for driving lasting impact. Circuit exemplifies this approach by delivering innovative solutions that enhance urban mobility while addressing critical infrastructure challenges.

The Problem

North American cities face mounting transportation challenges stemming from inefficient land use, inadequate transit infrastructure and an overreliance on private vehicles. In 2022, 69% of U.S. workers commuted alone, while only 9% carpooled ¹, illustrating the inefficiency of current systems. Short-distance trips—under five miles— exacerbate the problem, as they remain dominated by private vehicles or expensive ride-hailing services. contributing disproportionately to urban gridlock and emissions.

Public transit systems, while essential, face their own set of challenges. Ridership, which declined sharply during the COVID-19 pandemic, rebounded to 80% of pre-pandemic levels by 2023, according to the American Public Transportation Association. Despite this resurgence, transit agencies heavily reliant on fare revenue continue to struggle financially. In some cases, agencies have been forced to consider service cuts, fare hikes, or project delays, creating a “death spiral” of declining ridership and deeper service cuts. Operational inefficiencies further compound these challenges. For example, congestion slows buses, requiring additional vehicles and drivers, which inflates costs and limits the capacity of already strained systems.

With urbanization accelerating, the demand for efficient and sustainable transit alternatives has reached a critical point. Cities urgently require solutions that alleviate congestion and enhance the performance of existing transit systems.

Circuit’s Solution: Bridging Urban Mobility Gaps

Circuit directly addresses these challenges through its fleet of low-cost, electric-powered shuttle service that bridge critical gaps in urban transportation. By pooling short-distance trips and connecting transit hubs to final destinations, Circuit alleviates these pressures, whilst also enhancing the overall accessibility and usability of transit systems.

• Proven Success: With localized operations in over 40 U.S. cities, Circuit has demonstrated impressive adoption rates. These deployments demonstrate the scalability and adaptability of their solution, supported by strategic partnerships with municipalities, businesses, and ad sponsors. These collaborations highlight Circuit’s ability to integrate into diverse urban contexts while meeting the specific needs of each community.
• Affordable and inclusive: Circuit’s rides are free or low-cost, funded through contracts with cities, agencies, and developers, ensuring that the service remains inclusive and widely available to the public. To cities and partners, Circuit offers a cost-effective solution, delivering a lower cost per rider compared to traditional fixed-route transit services while offering an experience comparable to ride-hailing, making it an attractive and sustainable complement to existing services.
• Turnkey Mobility Solution: Circuit provides a ready-to-deploy solution for cities and businesses, managing operations, maintenance, and customer experience to deliver hassle-free, localized transit services.
• Environmental Impact: By replacing thousands of car trips annually with electric-powered alternatives, Circuit reduces emissions and congestion, aligning with global efforts to combat climate change and improve air quality.

Circuit’s model provides a scalable, forward-thinking model that not only addresses today’s transportation issues but also lays the foundation for more livable, efficient, and sustainable cities in the future.

A Team Built for Impact

Under the visionary leadership of Alexander Esposito and James Mirras, Circuit is tackling complex mobility challenges with innovative, sustainable solutions. Their leadership has not only driven the company’s remarkable growth but also ensured its ability to adapt seamlessly to the unique demands of diverse urban environments.

Looking Ahead

As Circuit continues to expand its reach, we are proud to partner with them on this transformative journey. At MKB, we believe the future of transportation is electric, efficient, and accessible to all. Circuit is turning this vision into reality, creating greener, more connected cities for generations to come.

Welcome to the MKB family, Circuit—we are excited to shape the future of urban mobility together.

For further information, read the Circuit press release here: https://www.ridecircuit.com/blog/series-b

1 Source: Bureau of Transportation Statistics.