Texas A&M University alumnus Matthew Iommi has successfully tackled the long-standing problem of transporting groups of people with his startup, Fetii. The Austin-based company has just closed a $7.35 million seed round led by Mark Cuban, with participation from Y Combinator, Goodwater Capital, and others. This investment will fuel Fetii's expansion into new markets, including Florida, California, and Massachusetts.

Iommi, now 28, identified the need for a convenient, accessible, and affordable group rideshare service during his college days. He realized that existing options, such as Uber and Lyft, were not designed to accommodate groups of six to seven people, leading to inefficient and unsustainable solutions. This prompted him to co-found Fetii with Justin Rath in 2020, with the goal of creating an on-demand group rideshare service catering to seven to 14 passengers.

Fetii's innovative approach has already shown promising results, with the company operating in 68 cities across six states and transporting over 200,000 passengers each month. Notably, 75% to 80% of these rides are on-demand, demonstrating the service's popularity among its target demographic of young adults and college students.

Iommi attributes Fetii's success to its focus on this specific age group, which has been underserved by traditional charter companies and ride-hail platforms. By targeting college students and young adults, Fetii has developed a playbook to scale its service, partnering with universities, organizations, and events to create a strong brand presence.

The startup's unique payment system, which allows individual riders to pay their fare by scanning a QR code, has also been a key factor in its growth. This approach eliminates the need for one person to cover the entire cost and ensures a seamless, cost-efficient experience for all riders.

Fetii's seed round is a significant milestone, with Mark Cuban's involvement being a notable endorsement. The billionaire investor, who rejected an offer to invest in Uber in 2009, believes Fetii has the potential to be a global player and achieve significant profitability.

Iommi initially considered an acquisition by Uber or Lyft as a potential exit strategy but has since shifted his focus towards building a sustainable, profitable business. While Fetii remains open to partnerships with ride-hail giants, Cuban's investment and guidance will likely play a crucial role in shaping the startup's future growth and expansion plans.

As Fetii continues to scale and expand its services, its impact on the group rideshare market is likely to be significant. With its innovative approach, focus on young adults, and commitment to sustainability, Fetii is poised to revolutionize the way groups of people travel together.