In a country where workers can face commutes of up to three hours one way, a Mexican startup is tackling one of the biggest challenges facing employers and employees alike: transportation.
Kolors, which operates in 40 cities across Mexico and moves 7 million passengers annually, has developed a technology-driven approach to employee transportation that is reshaping the e-commerce and logistics sectors. This isn’t your father’s bus service, however; the key to the mobility shakeup is technology. “We don’t consider ourselves a transportation company,” says Rodrigo Martinez, co-founder and CEO of the company. “We’re first and foremost a technology and data company.”
The company aims to build what Martinez calls "a global mobility powerhouse" specifically designed for mass transportation, and to address an infrastructure gap that neither private nor public transportation has been able to fill. To that end, Kolors has adapted airline-inspired optimization techniques for ground transportation, enabling flexible scaling and rapid deployment.
I like to say that if Uber and an airline had a baby it would be Kolors.
Transportation problems in Mexico have become particularly acute for workers as more business hubs are built on the outskirts of urban centers and commuting becomes more complicated, especially for facilities operating 24/7. Car ownership in Mexico is less than half that of the US, and public transportation is often limited or nonexistent during nighttime hours.
The transportation gap is a major contributor to employee turnover, says Martinez. To help solve the problem, Kolors has positioned itself at the intersection of technology and transportation. Unlike traditional transportation providers, Kolors doesn't own any vehicles. Instead, the company partners with small and medium-sized fleet operators who own and operate over 1,000 high-capacity vehicles, including shuttle vans and charter buses. Kolors then adds layers of technology, data analytics and customer experience management to create the most dynamic, flexible and comprehensive mobility solution for employers of all sizes, providing workers with a safer, faster and more comfortable commute.
The company provides employers with granular data on transportation usage patterns and attendance, creating measurable KPIs for what was previously an opaque service. In leveraging artificial intelligence for route optimization and real-time problem-solving, Kolors can swiftly adapt to changing conditions—switching from 20-passenger buses to 6-passenger SUVs based on daily demand, for example. It is also developing “Agentic AI” to manage, analyze and make sense of all the live data flowing in from the operational-heavy industry that is transportation. Kolors’ platform allows businesses to better coordinate responses to any type of disruptions, from traffic jams to vehicle breakdowns, potentially reducing transportation costs by up to 30% compared to traditional fixed-asset models.
The business case for employers is compelling even beyond the imperative of attracting and retaining talent in the growing e-commerce industry, where competition for workers is intensifying. For manufacturing companies in Mexico, where each worker generates approximately $70,000 in annual output, every missed workday represents some $200 in lost productivity. At roughly $3 to $6 per day in transportation costs, says Martinez, companies see a 35x return on investment by ensuring reliable employee attendance.
In addition, if an e-commerce client needs to add, say, 1,000 temporary workers during a seasonal peak, Kolors can implement new pickup routes in days rather than the weeks or months traditional transportation providers might require. Not surprisingly, that lightning-fast timeline has caught the attention of the e-commerce world. One of the largest e-commerce platforms now uses Kolors to ferry employees to and from 67% of its facilities in Mexico.
Looking ahead, Kolors is focusing on expansion in Mexico, elsewhere in Latin America and beyond by leveraging the more than 100 AAA major organizations Kolors already works with and expanding with them across borders. The company is also emphasizing sustainability initiatives, including fleet electrification, to help clients and partners meet ESG goals. “Everyone wants to reduce emissions,” says Martinez. “With even a 20-seat van, you’re replacing at least a dozen cars.”
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